Kathmandu: Inflation has decreased significantly compared to last year as the average inflation stood at 1.67 percent in the first quarter of the current fiscal year compared to 4.26 percent a year ago.
According to National News Agency Nepal, this information 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 year-on-year (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 by 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 by 7.20 percent and 3.49 percent, respectively.
Under the food and beverage category, the y-o-y price index of the ghee and oil sub-category increased by 7.75 percent, non-alcoholic drinks by 3.71 percent, and meat and fish by 3.15 percent. In contrast, the y-o-y price index of the vegetable sub-category decreased by 15.63 percent, spices by 7.82 percent, and pulses and legumes by 4.41 percent.
In the non-food and services category, the y-o-y price index of miscellaneous goods and services sub-category increased by 15.51 percent, education by 7.67 percent, clothes and footwear by 6.29 percent, tobacco products by 4.84 percent, and furnishing and household equipment by 4.55 percent. Meanwhile, the y-o-y price index of insurance and financial services sub-category decreased by 0.23 percent.
During the review month, the y-o-y price index in rural areas increased by 1.29 percent, while in urban areas, it rose by 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.
The report also highlighted the Wholesale Price Inflation (WPI) scenario. 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 by 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 by 3.88 percent in the review month.
The y-o-y salary and wage index increased by 4.48 percent in the first quarter of the fiscal year 2025-26 compared to 3.31 percent a year ago. Based on provinces, in the review quarter, the increase in the 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.
The report also compared consumer price inflation between Nepal and India. The y-o-y consumer price inflation in Nepal remained at 1.47 percent in mid-October 2025, while such inflation in India stood at 0.25 percent in October 2025.