Inflation Surges to 5.6% in Mid-November; Remittance Inflow Totals 521.63 billion in 4 months

The year-on-year consumer price inflation stood at 5.6 percent in mid-November compared to 5.38 percent a year ago, according to the latest Nepal Rastra Bank’s data. 

Food and beverage inflation stood at 9.1 percent whereas non-food and service inflation stood at 3.65 percent in the review month. 

Under the food and beverage category, the year-on-year consumer price index of vegetables increased by 33.99 percent, pulses and legumes 10.78 percent, cereal grains and their products 10.75 percent and ghee and oil 9.29 percent but the price index of spices sub-category decreased 1.41 percent, sugar and sugar products by 1.28 percent and meat and fish 0.02 percent, says the ‘Current Macroeconomic and Financial Situation of Nepal’, which analyses data of the first four months of the current fiscal year. 

“Under the non-food and services category, the year-on-year price index of miscellaneous goods and services sub-category increased 10.41 percent, alcoholic drinks 6.35 percent, clothes and footwear 4.57 percent and tobacco products 4.24 percent,” it says. “During the review month, the y-o-y price index in rural areas and in urban areas increased 6.19 percent and 5.39 percent respectively.”

Province-wise, the inflation in Koshi was 7.19 percent, Madhesh 5.72 percent, Bagmati 5.35 percent, Gandaki 4.69 percent, Lumbini 5.10 percent, Karnali 3.21 percent, and Sudurpaschim 6.57 percent in the review month.

Similarly, the year-on-year consumer price inflation in the Kathmandu Valley, Tarai, Hill and Mountain region surged to 5.42 percent, 5.72 percent, 5.15 percent and 6.78 percent respectively.

Nepal Receives Rs 521.63 billion in Remittance

Nepal received Rs 521.63 billion in remittance in the first four months of the current fiscal year.

“Remittance inflows increased 9.1 percent percent to Rs 521.63 billion in the review period compared to an increase of 22.5 percent in the same period of the previous year,” the central bank report says.

In US Dollar terms, remittance inflows reached 3.87 billion in the review period. It was 3.6 billion in the same period the previous fiscal year.   

Similarly, the number of Nepali workers, both institutional and individual, taking first-time approval for foreign employment stood at 147,478 in the period, compared to 137,475  in the same period last year. A total of 94,105 Nepali migrant workers renewed their labour permits, compared to  68,841  in the same period last year.

Current account in surplus of Rs 143.42 billion

The current account of the Government of Nepal remained at a surplus of Rs 143.42 billion  in the review period compared to a surplus of Rs 97.10 billion in the same period of the previous year. 

“In the review period, net capital transfer amounted to Rs 2.47 billion and foreign direct investment inflow (Equity only) remained at Rs 5.76 billion," according to NRB. 

Similarly, the Balance of Payments (BOP) remained at a surplus of Rs 205.83 billion in the review period while it was at a surplus of Rs. 150.24 billion in the same period of the previous year. 

The report stated that the gross foreign exchange reserves increased 10.5 percent to Rs 2,255.35 billion in mid-November 2024 from Rs 2,041.10 billion in mid-July 2024.

Also, the year-on-year unit value export price index, based on customs data, increased 0.2 percent and the import price index decreased 3.1 percent.  The terms of trade index increased 3.5 percent in the review period. 

Likewise, the net services income remained at a deficit of Rs  22.95 billion in the review period compared to a deficit of Rs  27.89 billion in the same period of the previous year.