Annual average inflation stands at over 5 percent

KATHMANDU, AUGUST 18: The country's annual average inflation stood at 5.44 percent in the last fiscal year, remaining within the expected ceiling. According to the Current Macroeconomic and Financial Situation of Nepal report (based on annual data) unveiled by the Rastra Bank today, imports decreased by 1.2 percent, and exports by 3 percent in 2023/24. In 2022/23, imports had decreased by 16.1 percent and exports by 21.4 percent, respectively.

Remittance inflows increased by 16.5 percent to reach Rs. 1445.32 billion, compared to a 23.2 percent increase in the previous year. In US Dollar terms, remittance inflows increased by 14.5 percent to reach $10.86 billion in the review year, compared to a 13.9 percent increase in the previous year, according to the report.

Additionally, the balance of payments remained at a surplus of Rs. 502.49 billion, compared to a surplus of Rs. 285.82 billion in the previous year. Gross foreign exchange reserves stood at $15.27 billion, a level sufficient to cover 13 months of merchandise and services imports.

Broad money (M2) expanded by 13.0 percent, and deposits at Banks and Financial Institutions (BFIs) increased by 13.0 percent. Private sector credit increased by 5.8 percent in the review year. Total deposits at BFIs stood at Rs. 6452 billion, while private sector credit amounted to Rs. 5074 billion.