Inflation Rate, not going as expected by Nepal Rastra Bank

Due to the obstruction in the distribution system of consumer idem & hording of those items by consumer owing to the unrest in Tarai and Indian blockade, Inflatin has been increased to over 10 percent. From the last fiscal policy we have seen that Government had aimed to limit inflation to 8 percent. But actual rate is not going as expected by the government and authorized central department, Nepal Rastra Bank Ltd.

Here, there were different tools that Rastra Bank brought to the market to control inflation. Stating that inflation cannot be controlled through monetary tools alone unless supply eases. The authorized body already warned of serious consequences of the increasing rate. Especially, rate of inflation has been increased on most important consumer item like, Ghee, Cloths, and Oil according the data provided by the Central Authorized body.

 It’s been almost five months of Indian blockade, but there is no any positive sign, every politician are much more conscious of their individual benefit and directly affected foreign trade, Import fell by 38.8 percent whereas export by 29.10 during the months. Nepal exported goods worth Rs. 20.96 billion during the period and imported goods worth Rs. 160.99 billion with foreign trade. Remittance has been increase by 19 percent to Rs. 215.29 billion in the first four months as per the latest data published by the Central Authorized Body.