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KATHMANDU – Annual retail inflation in Nepal accelerated to a six-year excessive of seven.87% for the month ending mid-Could, central financial institution information confirmed on Friday, pushed up by hovering meals and gasoline prices amid strain on the nation’s forex.
A surge in crude oil and commodity costs since Russia invaded Ukraine in February has pushed up inflation globally, forcing many central banks to lift rates of interest to dampen client demand.
Nepal, landlocked between China and India, has banned luxurious items imports till mid-July and switched to a two-day weekend to chop gasoline consumption amid dwindling foreign exchange reserves.
A 3.7% depreciation in Nepal’s forex in opposition to the greenback between mid-July 2021 and mid-Could 2022 has made imports of gasoline and meals merchandise extra costlier.
On Friday, the forex additional depreciated to 124.73 per greenback, the bottom ever, central financial institution (NRB) information confirmed.
Meals and beverage costs rose 7.13% whereas non-food and repair inflation stood at 8.45%, Friday’s studying confirmed.
Prakash Kumar Shrestha, head of the NRB’s Financial Analysis Division, stated rising oil costs may additional push up inflation and on Friday, state-owned Nepal Oil Company raised gasoline costs by as much as 7.8%, retailers stated.
Costs of staple items together with greens, rice, lentils, and cooking oil have additionally risen sharply. “If it goes on like this there isn’t a different to slicing the variety of our meals,” stated Kathmandu housewife Sangita Khadka.
(Reporting by Gopal Sharma)
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