GDP growth rate is around 5% (for this year), population growth rate is above 2.1%, and now CPI is 9.2%. Nepalese economy is getting worse or better? It is affecting exports (fell by 2.1%) as Nepal lost price competitiveness in the international market. On a positive note, remittances grew by 35.3% (to Rs 108.64 billion), leading to increase in foreign exchange reserve by 19.3% to Rs 197.03 billion. Sterilization is in upward trend.
...Fresh data released by the Nepal Rastra Bank (NRB) shows that the inflation based on the consumer price index rose to 9.2 percent in mid-May, the tenth month of the current fiscal year, up from 4.6 percent of the same time last year.
The central bank said the rising prices of food items led to the rise. Still, the inflation based on wholesale price index increased to 10.1 percent.
NRB officials said inflation would further rise in the coming months, as the recent price hike of petroleum products would have to be considered.
On the import front, a rise of 21 percent was seen as people consumed more on the back of healthy inflow of remittance.
NRB said there had been significant rise in import of petroleum products, MS billet, vehicles and spare parts, gold, telecommunication equipment, videos, television and parts.
...the government budget deficit was Rs 6.4 billion during that period, compared to a surplus of Rs 2.86 billion. To meet the growing requirement of Indian currency, NRB purchased the Indian units worth Rs 77.27 billion through a sale of US$ 1.21 billion.
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