April 5: The year-on-year (y-o-y) consumer price inflation moderated to 4.82 percent in mid-March 2024 compared to 7.44 percent a year ago.

According to the Current Macroeconomic and Financial Situation Report of the Nepal Rastra Bank unveiled on Thursday, food and beverage category inflation stood at 5.94 percent whereas non-food and service category inflation stood at 3.95 percent in the review month.

Under the Food and Beverage Category, the y-o-y price index of spices sub-category increased 28.17 percent, vegetable 14.07 percent, pulses and legumes 11.22 percent, cereal grains and their products 7.35 percent and milk products and eggs 7.11 percent in the review month. The y-o-y price index of ghee and oil sub-category decreased 11.79 percent in the review month, the NRB report added.

Under the non-food and services category, the y-o-y price index of recreation and culture sub-category increased 12.61 percent, miscellaneous goods and services 10.67 percent and education 7.31 percent in the review month. The y-o-y price index of transportation sub-category decreased 1.15 percent in the review month.

The y-o-y consumer price inflation in the Kathmandu Valley, Terai, Hill and Mountain region stood at 4.88 percent, 4.42 percent, 5.49 percent and 4.42 percent respectively in the review month. Such inflation in these regions was 7.95 percent, 7.50 percent, 6.67 percent and 8.07 percent respectively a year ago.

Meanwhile, the World Bank in its latest report had recently projected consumer price inflation in Nepal to remain high at 6.7 percent in 2024, close to the central bank's 6.5 percent ceiling, due to VAT exemptions removal, India's food export restrictions, and increase in minimum support prices of paddy.