Inflation surges by 8 pc

The year-on-year inflation as measured by the consumer price index increased by 8.7 percent in mid-May 2012 as compared to 9.5 percent in the same period last fiscal year.

According to the latest macroeconomic report of Nepal Rastra Bank (NRB) of the first ten months of this fiscal year, the index of food and beverage group increased by 7.1 percent while the index of non-food and services group went up by 10.1 percent during the review period.

These indices had increased by 16 percent and 4.2 percent, respectively in the same period the previous fiscal year.

The rate of inflation in mid-May 2012 was higher than 7.5 percent recorded in mid-April 2012 due to the adverse impact of strikes on supply, said NRB.

Region-wise, the price indices in the Hill increased by 9.4 percent followed by Terai 9 percent and the Kathmandu Valley 7.7 percent during the review period. The respective increment rates were 10.8 percent, 7.1 percent and 11.6 percent respectively in the corresponding period of the previous year.

The y-o-y wholesale price index increased by 8 percent during the review period compared to a rise of 10.7 percent in the corresponding period of the previous year.

The wholesale price indices of imported commodities and domestic manufactured commodities increased by 13.7 percent and 6.7 percent whereas the index of agricultural commodities increased by 5.5 percent during the review period.

Meanwhile, the y-o-y salary and wage rate index increased by 22.7 percent during the review period compared to an increase of 24.8 percent in the corresponding period of the previous year. nepalnews.com