Inflation exceeds cap of 7.44 percent

The Nepal Rastra Bank (NRB) has issued a report about current macroeconomic and financial situation of Nepal based on the data of the last eight months.

The report unveiled by the central bank today shows that some economic indices are improving while some are deteriorating.
As the report states, the year–over-year consumer price inflation remained at 7.44 percent in mid-March 2023 compared to 7.14 percent a year ago. It may be noted that in the current fiscal year, the government has a target of limiting the inflation below 7 percent.

Food and beverage inflation stood at 5.64 percent whereas non-food and service inflation rose to 8.87 percent in the review month.

Likewise, remittances increased by 25.3 percent in NPR terms and 14.8 percent in USD terms while the Balance of Payments remained at a surplus of Rs.148.11 billion.

Gross foreign exchange reserves stood at NPR 1401.21 billion and 10.69 billion in USD terms, the report highlights. Federal Government expenditure is amounted to Rs.779.23 billion and revenue collection is Rs.582.77 billion.

Broad money (M2) increased by 5.3 percent. On y-o-y basis, M2 increased 9.1 percent. Deposits at BFIs increased 5.5 percent and private sector credit increased 4.6 percent. On y-o-y basis, deposits increased 10.5 percent and private sector credit increased 3.1 percent.

Similarly, till mid-March, imports decreased by 19.1 percent, exports decreased 29.1 percent and trade deficit decreased 17.9 percent.