Kathmandu, June 9: Nepal’s consumer price inflation rose to 5.04 percent year-on-year in mid-May 2026, sharply higher than 2.77 percent in the same period last year, according to Nepal Rastra Bank (NRB) inflation data.
Food and beverage inflation stood at 4.63 percent, while non-food and services inflation reached 5.26 percent, indicating stronger price pressures outside the food sector as well.
The data shows that average inflation over the first ten months of the current fiscal year remained relatively moderate at 2.66 percent, compared to 4.39 percent a year earlier, suggesting a recent acceleration in price growth.
Food prices led by fruits and edible oils
Within the food and beverage category, prices of fruits surged by 18.60 percent, followed by ghee and oil (13.99 percent) and vegetables (5.40 percent). Meat and fish prices also increased by 4.16 percent. In contrast, prices of pulses and legumes declined by 1.67 percent, while spices fell by 0.65 percent.
Transport and services push non-food inflation
In the non-food and services segment, the steepest rise was recorded in miscellaneous goods and services at 19.90 percent, followed by transportation costs at 15.30 percent. Education rose by 5.54 percent, alcoholic drinks by 4.77 percent, and clothing and footwear by 4.73 percent.
Urban areas face higher inflation pressure
Inflation was higher in urban areas at 5.29 percent, compared to 4.35 percent in rural areas, reflecting stronger price pressures in cities.
Regionally, inflation was highest in the Terai at 5.59 percent, followed by Koshi Province (5.64 percent) and Lumbini Province (5.31 percent). Bagmati Province recorded the lowest rate at 4.55 percent.
Across ecological belts, inflation stood at 4.90 percent in Kathmandu Valley, 4.73 percent in the Hill region, and 3.73 percent in the Mountain region, the lowest among all categories.
Economists often view such inflation patterns as driven by both supply-side shocks in food items and rising service-sector costs, particularly transport and essential household services. #nepal
