NRB reports subdued price growth in Q1 of 2025/26 amid moderate wage gains
KATHMANDU, NOVEMBER 16
Consumer price inflation in Nepal remained subdued in mid-October 2025, with the year-on-year rate standing at 1.47 percent, sharply lower than 4.82 percent a year ago, according to the Nepal Rastra Bank's latest macroeconomic report. Food and beverage prices fell 2.54 percent, while non-food and services inflation edged up 3.80 percent. On a quarterly basis, average inflation stood at 1.67 percent in the first three months of the fiscal year 2025/26, down from 4.26 percent in the same period last year.
Breaking down food and beverage prices, ghee and oil rose 7.75 percent, non-alcoholic drinks 3.71 percent, and meat and fish 3.15 percent, while vegetables dropped 15.63 percent, spices 7.82 percent, and pulses and legumes 4.41 percent. In the non-food and services category, miscellaneous goods and services surged 15.51 percent, education 7.67 percent, clothes and footwear 6.29 percent, tobacco products 4.84 percent, and furnishings and household equipment 4.55 percent, whereas insurance and financial services edged down 0.23 percent.
Inflation trends varied by region, with rural areas recording 1.29 percent and urban areas 1.53 percent. At the provincial level, Koshi Province saw the highest inflation at 2.33 percent, followed by Karnali 1.91 percent, Lumbini 1.89 percent, Madhesh 1.20 percent, Bagmati 1.13 percent, Gandaki 1.16 percent, and Sudurpashchim 0.69 percent. By geography, the Kathmandu Valley registered 1.43 percent, Terai 1.29 percent, Hills 1.50 percent, and Mountain regions 2.33 percent.
Wholesale price inflation mirrored the downward trend, standing at 1.32 percent in mid-October compared to 5.51 percent a year ago. Prices of consumption goods fell 1.24 percent, while intermediate and capital goods rose 2.71 percent and 2.40 percent respectively. Construction materials saw an increase of 3.88 percent in the review month.
Meanwhile, the year-on-year Salary and Wage Index (SWI) rose 4.48 percent in the first quarter of the fiscal year, up from 3.31 percent last year. Wage growth was strongest in Gandaki Province at 9.42 percent, followed by Lumbini 6.68 percent, Sudurpashchim 5.62 percent, Bagmati 4.16 percent, Madhesh 3.62 percent, Karnali 1.36 percent, and Koshi 1.12 percent.
For international comparison, Nepal's consumer price inflation of 1.47 percent in mid-October remained above India's 0.25 percent, indicating relatively moderate price pressures domestically.
