Kathmandu: Inflation has decreased significantly compared to last year as the average inflation stood at 1.67 percent in the first quarter of current fiscal year compared to 4.26 percent a year ago.
This is stated in a report entitled ‘Current Macroeconomic and Financial Situation of Nepal based on three months data of 2025/26’ published by Nepal Rastra Bank (NRB) today. The NRB report said the y-o-y consumer price inflation stood at 1.47 percent in mid-October 2025 compared to 4.82 percent a year ago.
Food and beverage inflation decreased 2.54 percent whereas non-food and service inflation stood at 3.80 percent in the review month. During the same period in the previous year, the price indices of these groups had increased 7.20 percent and 3.49 percent, respectively.
Under the food and beverage category, y-o-y price index of ghee & oil sub-category increased 7.75 percent, non-alcoholic drinks 3.71 percent and meat & fish 3.15 percent while y-o-y price index of vegetable sub-category decreased 15.63 percent, spices 7.82 percent and pulses and legumes 4.41 percent.
Under the non-food and services category, y-o-y price index of miscellaneous goods and services sub-category increased 15.51 percent, education 7.67 percent, clothes and footwear 6.29 percent, tobacco products 4.84 percent, and furnishing & household equipment 4.55 percent while y-o-y price index of insurance & financial services sub-category decreased 0.23 percent.
During the review month, y-o-y price index in rural areas increased 1.29 percent, while in urban areas, it rose 1.53 percent. Based on provinces, in the review month, y-o-y consumer price inflation in Koshi Province is 2.33 percent, Madhesh Province 1.20 percent, Bagmati Province 1.13 percent, Gandaki Province 1.16 percent, Lumbini Province 1.89 percent, Karnali Province 1.91 percent, and Sudurpashchim Province 0.69 percent.
In the review month, y-o-y consumer price inflation in the Kathmandu Valley, Terai, Hill and Mountain region stood at 1.43 percent, 1.29 percent, 1.50 percent and 2.33 percent respectively. Wholesale Price Inflation (WPI) The y-o-y wholesale price inflation stood at 1.32 percent in mid-October 2025 compared to 5.51 percent a year ago.
The y-o-y wholesale price inflation of consumption goods decreased 1.24 percent while intermediate goods and capital goods stood at 2.71 percent and 2.40 percent respectively. The y-o-y wholesale price index of construction material increased 3.88 percent in the review month.
The y-o-y salary and wage index increased 4.48 percent in first quarter of fiscal year 2025-26 compared to 3.31 percent a year ago. Based on provinces, in the review quarter, the increase in y-o-y salary and wage index in Koshi Province is 1.12 percent, Madhesh Province 3.62 percent, Bagmati Province 4.16 percent, Gandaki Province 9.42 percent, Lumbini Province 6.68 percent, Karnali Province 1.36 percent, and Sudurpashchim Province 5.62 percent.
Consumer Price Inflation in Nepal and India The y-o-y consumer price inflation in Nepal remained at 1.47 percent in mid-October 2025. Such inflation in India stood at 0.25 percent in October 2025.