Inflation down to 1.5%

By A Staff Reporter,Kathmandu, Nov. 17: The consumer price inflation (CIP) fell sharply to 1.47 per cent in mid-October 2025, a significant decline from 4.82 per cent recorded during the same period last year.

According to the current macroeconomic and financial situation report made public by Nepal Rastra Bank on Sunday, food and beverage inflation decreased by 2.54 per cent whereas non-food and service inflation stood at 3.80 per cent in the review month. 

During the same period in the previous year, the price indices of these groups had increased by 7.20 per cent and 3.49 per cent, respectively. The average inflation stood at 1.67 per cent in the first quarter of current fiscal year compared to 4.26 per cent a year ago. 

Under the food and beverage category, y-o-y price index of ghee and oil sub-category increased by 7.75 per cent, non-alcoholic drinks by 3.71 per cent and meat and fish by 3.15 per cent. However, the y-o-y price index of vegetable sub-category decreased by 15.63 per cent, spices by 7.82 per cent and pulses and legumes by 4.41 per cent. 

Under the non-food and services category, y-o-y price index of miscellaneous goods and services sub-category increased by 15.51 per cent, education by 7.67 per cent, clothes and footwear by 6.29 per cent, tobacco products by 4.84 per cent, and furnishing and household equipment by 4.55 per cent.

However, the y-o-y price index of insurance and financial services sub-category decreased by 0.23 per cent during the review month. During the review month, y-o-y price index in rural areas increased by 1.29 per cent, while in urban areas, it rose by 1.53 per cent. 

Based on provinces, in the review month, y-o-y consumer price inflation in Koshi Province was 2.33 per cent, Madhes Province 1.20 per cent, Bagmati Province 1.13 per cent, Gandaki Province 1.16 per cent, Lumbini Province 1.89 per cent, Karnali Province 1.91 per cent, and Sudurpashchim Province 0.69 per cent. 

In the review month, y-o-y consumer price inflation in the Kathmandu Valley, Tarai, Hill and Mountain region stood at 1.43 per cent, 1.29 per cent, 1.50 per cent and 2.33 per cent respectively. The y-o-y wholesale price inflation stood at 1.32 per cent in mid-October 2025 compared to 5.51 per cent a year ago. 

The y-o-y wholesale price inflation of consumption goods decreased by 1.24 per cent while intermediate goods and capital goods stood at 2.71 per cent and 2.40 per cent respectively. The y-o-y wholesale price index of construction materials increased by 3.88 percent in the review month. 

The y-o-y salary and wage index increased by 4.48 per cent in first quarter of fiscal year 2025/26 compared to 3.31 per cent a year ago.