KATHMANDU: After dropping to as low as 2.9 per cent in mid-March, consumer price inflation quickened to 3.8 per cent in mid-April, according to the latest macroeconomic update unveiled by Nepal Rastra Bank on Tuesday.

Such inflation was 9.7 per cent in the corresponding period of the previous year. The decline in year-on-year inflation compared to the previous year is mainly on account of the previous year’s base price effect and improved supply situation, as per the central bank. The hilly region witnessed relatively a higher rate of inflation of 5.6 per cent, followed by tarai region (3.4 per cent), mountain region (2.8 per cent) and Kathmandu Valley (2.7 per cent).

Meanwhile, the year-on-year consumer price inflation was three per cent in India in April, showing inflation wedge of 0.8 per cent. Such inflation was 5.4 per cent in India and 9.7 per cent in Nepal, in the corresponding period of the previous year, reflecting a wider inflation differential of 4.3 per cent.

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