Inflation Cools to 3.25% in Magh: NRB Report

KATHMANDU – Nepal’s annual point-to-point consumer price inflation saw a notable decline, dropping to 3.25% in the month of Magh (mid-January to mid-February).

According to the “Current Macroeconomic and Financial Situation Report” released by Nepal Rastra Bank (NRB) on Wednesday, this represents a significant cooling compared to the same month last year, when inflation stood at 4.16%.

The report highlights a steady stabilization in price levels over the first seven months of the current fiscal year (2082/83). The average inflation for this seven-month period was recorded at 1.92%, a sharp contrast to the 4.86% seen during the same period in the previous year.

Sectoral Breakdown for Magh:

• Food and Beverage Group: 2.50%

• Non-Food and Services Group: 3.66%

• Wholesale Inflation: 6.21%

While the overall food category remained relatively stable, specific commodities experienced high volatility. Households felt the pinch in the produce aisle, while staples like grains saw a welcome price reduction.

Commodity Group	Price Change (%)
Vegetables	+11.63%
Ghee and Oil	+7.61%
Fruits	+7.41%
Pulses and Legumes	-5.19%
Food and Cereal Grains	-2.97%

Regional Disparities

Inflationary pressure was not uniform across the country. Madhesh Province recorded the highest inflation rate at 5.14%, while the Kathmandu Valley hovered near the national average at 3.48%.

Conversely, the western regions enjoyed the lowest price hikes:

• Karnali Province: 1.62%

• Sudurpashchim Province: 1.64%

International Context

The NRB report also provided a brief comparison with neighboring India, noting that India’s consumer inflation stood at 2.75% in January 2026. This suggests that while Nepal’s inflation is trending downward, it remains slightly higher than the regional benchmark.