Kathmandu: Consumer price inflation saw a significant decline, standing at 3.57% in mid-July 2024, down from 7.44% a year earlier. The annual average inflation for FY 2023/24 was recorded at 5.44%, a decrease from 7.74% the previous year.
In the food and beverage category, notable increases were observed in spices (26.40%), pulses and legumes (9.96%), sugar and sugar products (9.87%), cereal grains and their products (9.85%), and vegetables (8.29%). Conversely, ghee and oil prices fell by 10.99%. The annual average inflation for food and beverages was 6.47% for FY 2023/24, slightly lower than 6.62% the previous year, with a mid-July 2024 year-over-year inflation of 4.10%, down from 7.38% last year.
For non-food and services, the annual average inflation stood at 4.64%, a significant drop from 8.62% the year before. Within this category, miscellaneous goods and services saw an 11.38% increase, recreation and culture 10.96%, education 7.73%, furnishing and household equipment 4.75%, and clothing and footwear 4.56%. However, transportation costs decreased by 0.82%. Mid-July 2024 inflation for non-food and services was 3.15%, down from 7.48% a year ago.
Regionally, consumer price inflation in FY 2023/24 varied, with Kathmandu Valley at 5.99%, Terai at 4.82%, Hill at 5.78%, and Mountain at 6.86%. In mid-July 2024, inflation rates in these regions were 3.92%, 3.21%, 3.77%, and 3.71%, respectively, compared to higher rates from the previous year.