February 16: A majority of consumers in Nepal expect price level to increase in the next three months, while almost all the consumers expect the price level to increase over the next one year period, according to the latest report of Nepal Rastra Bank (NRB).     

The Inflation Expectations Survey (IES) of the second quarter of current fiscal year published by the central bank on Wednesday shows that 84.6 percent of the respondents expected the price level to increase in the next three months while 92.3 percent of the respondents expected price level to increase over the next one-year period.    

The number of respondents expecting price increases in the next three months as well as the next one year has however decreased from mid-Oct, 2022. Nevertheless, the number of respondents expecting price increase in food and its sub-group except fish, meat, milk, ghee and oil and hotel and restaurant has increased.    
Likewise, the number of respondents expecting price hike in non-food and services and real estate (housing) during the next three months has slightly decreased compared to that of mid-Oct, 2022. Furthermore, the number of respondents expecting price increase in one year ahead across the entire food products, except for fish, meat, milk, ghee and oil, drinks and tobacco and hotel and restaurant along with non-food and services groups has decreased compared to mid-Oct, 2022.    
The IES also showed that the median inflation expectation for the next three months and one year ahead has remained same compared to mid-Oct, 2022 and mean inflation expectation for the next three months and one year ahead has decreased.    
Median inflation expectations for three months and one year ahead stand at 10.0 percent and 12.0 percent respectively. This shows that individuals expect inflation to remain stable in the near term as well as in medium term, added the central bank.    
According to NRB, the survey was conducted from January 8 to January 14 among individual respondents from 60 market areas through field interviews. The results are based on responses from 2,010 individuals.