Inflation stood at 6.7pc in mid-March
Kathmandu, April 20
Against the government’s target to tame inflation within six per cent in the ongoing fiscal year, the consumer price inflation stood at 6.7 per cent in mid-March compared to 4.2 per cent a year ago.
As per the ‘Current Macroeconomic and Financial Situation of Nepal’ report of the first eight months of fiscal year 2019-20 (mid-July to mid-March) released by Nepal Rastra Bank (NRB) today, the overall inflation came under pressure amid the rise in food and beverages inflation. As per the report, the food and beverages inflation stood at 9.33 per cent during the review month with the price of vegetables, spices, pulses and legumes and meat and fish rising significantly.
In the review period, Kathmandu valley witnessed 7.61 per cent inflation followed by 6.84 per cent in the Tarai, 5.53 per cent in the hills and 5.42 per cent in the mountain region. These regions had witnessed 4.61 per cent, 3.61 per cent, 4.64 per cent and 5.47 per cent inflation, respectively, a year ago.
Similarly, the NRB report states that the country’s trade deficit narrowed down 4.3 per cent to Rs 849.33 billion in the first eight months of fiscal 2019-20 while the export-import ratio increased to 8.1 per cent in the review period from 6.5 per cent in the corresponding period of the previous year.
While merchandise exports increased by 22.3 per cent to Rs 74.91 billion in the review period compared to an increase of 15.6 per cent a year ago, merchandise imports decreased by 2.6 per cent to Rs 924.24 billion against an increase of 23.8 per cent in the same period of the previous year.
Likewise, balance of payments remained at a surplus of Rs 37.84 billion in the review period against a deficit of Rs 58.99 billion in same period last year. The current account registered a deficit of Rs 124.93 billion in review period against a deficit of Rs 191.49 billion in the same period of previous year.
Meanwhile, remittance inflow rose by 1.8 per cent to Rs 592.42 billion in the review period compared to increase of 23.4 per cent in the same period of the previous year.