Nepal Rastra Bank (NRB), which released the latest macro-economic report for the first quarter of the present fiscal year, said that remittances during the period stood at Rs75.88 billion, up from Rs 59.12 billion in the same period of last year. [break]
The country also received foreign direct investment of Rs 2.20 billion during the period, which again was a sharp rise over Rs 0.18 billion received in the same period a year ago.
According to the central bank, country´s total exports rose by 6.9 percent to Rs 18.04 billion during the first quarter. Of the total exports, export to India went up by 12.1 percent to Rs 11.57 billion, whereas exports to other countries declined by 1.3 percent to Rs 6.46 billion. Imports, on the other hand, increased by 7.8 percent to Rs 100.26 billion.
“Though imports from India increased by only 0.6 percent to Rs 63.90 billion, imports from other countries increased by 23.4 percent to Rs 36.35 billion,” reads the report.
As a result, total trade deficit during the quarter grew by 8 percent and touched Rs 82.23 billion.
Consumer price inflation, on the other hand, jumped 8.9 percent in mid-October 2011, compared to 8.5 percent in mid-September. NRB attributed the rise to sharp rise in prices of non-food and services that occupies 45 percent weight in total consumption basket.
According to the report, non-food and service inflation jumped to 8.2 percent during the month.
The prices of food items grew at a lower rate of 9.6 percent. The prices of vegetables increased by whopping 42.5 percent and the prices of fruits also went up by 30.2 percent, adding woes to general consumers.
However, consumers found some respite on cereal grains and their products, as their prices increased by just 1.8 percent during the period. The prices of spices also came down by 9 percent.
Among the non-food and services, the prices of clothing and footwear increased by 15.4 percent during the review period. Similarly, the cost of transport and household equipment also went up by 13.3 percent and 12.9 percent respectively.
Despite such sharp rise in prices of essential commodities and services, consumers managed their needs with relative ease, thanks to rise in salary and wage, which increased by 29.9 percent, according to the report.
“Salary increased by 19.3 percent and wage increased by still higher rate of 32.9 percent during the first three months of 2010/11,” reads the NRB statement.
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