July 26: Nepal Rastra Bank has released the results of Inflation Expectations Survey (IES) for the third quarter of the last fiscal year (FY 2021/22). According to the central bank, the survey was conducted from April 7 to April 12, 2022 among individual respondents from 24 market areas of twenty-one cities through field interviews.

The results are based on responses from 930 urban individuals, with additional 210 individuals in this survey compared to the number of individuals included in the previous survey.

According to the survey 92.5 percent of respondents expect price level to increase in the next three months. Likewise, 97.1 percent of respondents expect price level to increase over the next one year.

The share of respondents expecting price increases at more than current rate in next three months has slightly increased from mid-January, 2022, while the share of respondents expecting price increase at more than current rate over the next one year has slightly decreased, the report states.

Likewise, the share of respondents expecting price increase in next three months across the entire listed product groups except real estate (housing) has increased from mid-January, 2022. Similarly,  the share of respondents expecting price increase in one year ahead across food products has increased, while it has declined across the other product groups- non-food and services and real estate (housing) from mid-January, 2022.

The median inflation expectation for three months and one year ahead have been higher compared to mid-January, 2022. Median inflation expectations for three months and one year ahead stand at 10 percent and 14 percent respectively. The current median inflation perception is 12 percent. This shows that households expect inflation to decrease in the near term and increase in the medium term, the central bank said.