Notwithstanding the government data of the last month (mid-July) of the fiscal year 2008-09 that shows the price rise going down by 11.4 percent, the severity of price hike of essential food items does not seem to have mitigated in reality.

Experts have attributed the ceaseless price rise to hoarding, supply constraints and over-supply of money in the market, according to reports.

Nepal Rastra Bank (NRB) has claimed that the price rise has decreased to 11.4 percent from 12.3 percent a month ago. The central bank even argued that the price hike in non-food items has come down, thus narrowing down the inflation rate. But, ironically, there has been no slowing down in price of basic commodities.

The last fiscal year saw a continuous rise in price of food items. In the fourth month (mid-November of the last fiscal year), price hike was at its peak at 14.5 percent.

The Monetary Policy for the fiscal year 2009-10 has projected the price hike at 7.5 percent. However, the concerned authorities were totally unable to control price rise.

The failure on the part of the government to manage financial, monetary and political causes is only making it difficult for common people to smoothly run their livelihood.

Higher salary and remittance inflow also contributed to price hike, it is said. Remittance in the 11th month of 2008-09 touched Rs 188.88 billion.

Though growing remittance has ensured sound state of balance of payment (BoP) and forex reserve, it is simultaneously creating demand pressure. nepalnews.com

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