Kathmandu, September 29:

Annual consumer inflation in Nepal has registered at eight per cent, which is the highest rate in six years from 2000, says a statement from Nepal Rastra Bank (NRB).

As per the consumer inflation survey conducted by NRB in 2005-06, average annual consumer inflation stood at eight per cent in 2005-06 compared to the level of 4.5 per cent in 2004-05.

However, consumer price inflation ending mid-July 2006 stood at 8.3 per cent.

In 2000-01, consumer inflation stood at 2.4 per cent. Similarly, in 2001-02, consumer inflation stood at 2.9 per cent. In 2002-03, it stood at 4.8 per cent and in 2003-04 and 2004-05, consumer inflation stood at four per cent to 4.5 per cent.

Giving reasons for the increased inflation, NRB said that the prices of petroleum products went up by 35.7 per cent which pushed up the indices of household goods and services as well as transportation fare in 2005-06 and put pressure on inflation.

In the review period, the index of food and beverage group and non-food and service group moved up by 7.8 per cent and 8.1 per cent, respectively.

The less than normal rainfall during paddy plantation period (June-August) badly affected paddy production in 19 districts (mostly in the eastern region).

Siraha, Saptari, Morang, Jhapa, Illam, Terhathum and Okhaldhunga were the districts severely affected by poor monsoon during paddy plantation, says NRB.

Out of the 15 stations, six stations including Kathmandu did not receive even a single drop of rainwater, five stations recorded less than five per cent of the normal rainfall and the remaining stations recorded less than 30 per cent of the normal rainfall. This has adversely affected the production of wheat in 2005-06. Decline in the production of paddy and wheat, the principal food crops was mainly responsible for such a low growth rate of agricultural sector in the review year.

Of the twenty industrial groups included in the industrial production index, vegetable oil and fats sub-group with 15.8 per cent share in overall industrial production, witnessed a growth of 6.7 per cent in the first three quarters of 2005-06.

This growth rate is exactly the same growth of the subgroup in the same period of the previous year. The production of iron rod and billets sub-group increased by 9.1 per cent in contrast to the negative growth recorded in 2004-05.

The electrical wire and cable, medicine and soap, bricks and cement also recorded an increase in the first three quarters of 2005-06.

According to Department of Industry, 115 joint venture industries with total project cost of Rs 3.4 billion received permission in 2005-06.

In the previous year, 63 joint venture industries with total project cost of 1.8 billion rupees had received the approval for their establishment. The share of foreign investment in such projects is 55.5 per cent (Rs 1.9 billion) in the review year.

According to Department of Labour and Employment Promotion, the government provided final approval for foreign employment to 177,576 Nepali workers in 2005-06.

In the previous year, the department had granted final approval to 137, 678 Nepali workers for foreign employment. Malaysia, Qatar, Saudi Arabia and UAE are the four major destinations for Nepali workers.