KATHMANDU: Consumer price inflation decelerated to 2.3 per cent in the first month of this fiscal against 2.7 per cent of the previous month and 8.6 per cent of the corresponding period of last fiscal.

The central bank clarified that the higher base price of the previous year has contributed to the moderation of inflation in this month. Food price turned negative by one per cent in mid-August from 9.3 per cent in the corresponding period of last year.

Price of pulses and legumes fell by 23.3 per cent, vegetables by 11.7 per cent, spices by 3.5 per cent and fruits by 1.4 per cent during the review period. Similarly, non-food inflation also decreased during this period to 4.9 per cent against 8.1 per cent of the corresponding period of last fiscal.

The mountain region witnessed relatively higher rate of inflation of 5.6 per cent followed by Tarai region at 2.8 per cent, hilly region at 2.2 per cent and Kathmandu Valley at 1.3 per cent. In the same period of the previous year, these regions witnessed inflation rate of 7.1 per cent, 8.5 per cent, 10.9 per cent and seven per cent, respectively.

Consumer price inflation was relatively lower at 2.3 per cent in Nepal in mid-August compared to 3.4 per cent in India.