According to Nepal Rastra Bank, the year on year inflation as measured by CPI increased to 11.8 percent in Mid-January 2010 as compared to the 14.4 percent increase in the same period last year. [break]
The central bank blamed a whopping price rise in food and beverages behind jump in inflation rate. Food and beverages witnessed a rise of 18.1 percent whereas the index of non-food and services group rose only by 4.5 percent. The index of food and beverages and non-food and services group had risen by 18.3 percent and 10.3 percent respectively in the same period last year.
Of the items in the food and beverage group, price indices of sugar and sugar related products had the highest increment rate of 77.5 percent as compared to an increase of 37.3 percent in the same period last year.
Similarly, the price indices of pulses, spices, vegetables and fruits as well as meat, fish and eggs sub-groups increased in reviewed period by 36.7 percent, 34.8 percent, 29.2 and 22.8 percent respectively as compared to an increase of 25.6 percent, 8.1 percent, 13.3 percent and 22.5 percent in the same period last year.
The index of grains and cereal products sub-group also witnessed an increment of 11.7 percent compared to 16.5 percent increase in the corresponding period of the previous year. Similarly, within the group of non-food and services, the sub-index of tobacco and related products saw the highest increased rate of 11.6 percent during the review period compared to a rise of 15.1 percent during the same period last year.
Wholesale price inflation
During the period, wholesale price inflation increased by 16.0 percent compared to 14.7 percent a year ago.
The indices of agricultural commodities and domestic manufactured commodities increased by 30.2 percent and 10.4 percent respectively in the review period as compared to 17.0 percent and 11.8 percent a year ago. The price indices of imported commodities declined by 1.8 percent in the period.
National salary and wage rate
The overall salary and wage rate index rose by 17.7 percent in the period as compared to a rise of 15.4 percent a year ago.
Of the salary and wage rate indices, the salary index increased by 18.0 percent in the review period compared to a rise of 12.6 percent in the same period of the previous year.
The increase in basic salary and allowances by the government for civil servants and its simultaneous effect on salary of the private sector contributed to such an increase in salary index.
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