Kathmandu, February 15

Individuals across 60 market areas expect inflation to remain stable in the near term as well as in the medium term, as per a survey report released by the Nepal Rastra Bank (NRB) today.

Unveiling the results of the Inflation Expectations Survey (IES) of the second quarter of fiscal year 2022- 23, the central bank has shared that the survey was conducted from January 8 to 14 among individual respondents from 60 market areas through field interviews.

The results are based on responses from 2,010 individuals.

As per the study report, 84.6 per cent of respondents expect the price level to increase over the next threemonths.

Likewise, 92.3 per cent of the respondents expect the price level to increase over the next year, lower than the share of respondents expecting the price to increase over the next three months as well as in the next one year through a similar survey conducted in mid-October, 2022.

Meanwhile, the share of respondents expecting price increases in food and its sub-group, except for fish, meat, milk, ghee, and oil and hotel and restaurant, has increased while the share of respondents expecting price increases in non-food and services and real estate (housing) during the next three months has slightly decreased compared to that of mid-October, 2022.

The respondents who expect prices to increase in one year across the entire food products, except for fish, meat, milk, ghee, oil, drinks, tobacco, and hotels and restaurants along with non-food and services groups, have decreased compared to mid-October, 2022.

The report also shows that the median inflation expectation for the next three months and one year ahead has remained the same compared to mid-October, 2022 while the mean inflation expectation for three months ahead and one year ahead has decreased. Median inflation expectations for three months and one year ahead stand at 10 per cent and 12 per cent, respectively, indicating that individuals expect inflation to remain stable in the near term as well as in the medium term, as per the report.

A version of this article appears in the print on February 16, 2023, of The Himalayan Times.