KATHMANDU, July 13: Consumer price inflation in Nepal doubled to 5.22 percent in mid-June 2026 compared to 2.72 percent a year earlier, driven by rising prices of both food and non-food items and services.
The Current Macroeconomic and Financial Situation of Nepal report for 11 months, released by Nepal Rastra Bank (NRB) on Monday, shows food and beverage inflation at 4.95 percent and non-food and service inflation at 5.37 percent in the review month. In the same period last year, these indices had increased only 0.54 percent and 3.94 percent, respectively.
Market analysts attributed the surge to rising petroleum prices and weak government monitoring. Petrol, which cost Rs 157 per litre before the US-Iran tensions, climbed to Rs 217, while diesel jumped from Rs 142 to Rs 225 per litre over recent months.
Consumer price inflation doubles to 8.26 percent in one month o...
Under the food and beverage category, the year-on-year price index of fruits rose 17.40 percent, ghee and oil 15.10 percent, meat and fish 5.26 percent, and vegetables 4.14 percent. In contrast, the price index of pulses and legumes declined 0.93 percent.
In the non-food and services category, the price index of miscellaneous goods and services increased 16.68 percent, transportation 15.31 percent, alcoholic drinks 7.20 percent, education 5.54 percent, and clothes and footwear 5.53 percent.
Inflation varied across regions. Rural areas recorded a 4.78 percent rise, while urban areas saw a sharper increase of 5.38 percent. Province-wise, Koshi posted the highest inflation at 5.75 percent, followed by Madhesh and Lumbini at 5.62 percent each. Gandaki stood at 5.05 percent, Karnali at 4.89 percent, Bagmati at 4.79 percent, and Sudurpashchim at 4.61 percent.
Regionally, the price indices rose 4.98 percent in Kathmandu Valley, 5.74 percent in the Terai, 5.07 percent in the Hill region, and 3.71 percent in the Mountain region.
Despite the sharp rise in June, average inflation for the fiscal year declined. As of the 11-month review, average inflation stood at 2.89 percent compared to 4.24 percent in the same period last year.
