Inflation at 20-year low
Last fiscal year’s inflation rate of 3.6% is the lowest since 2001/02, according to Nepal Rastra Bank. Average annual inflation rates have stood at 6.7% over the last decade, but the pandemic and ensuing loss of demand in goods and service sectors have knocked numbers down. Nepal recorded a trade deficit of Rs13.98 trillion, spending Rs15.4 trillion on imports while recouping only Rs1.41 trillion on exports (see Editorial, page 2). While the current account is Rs3.33 trillion in deficit, the overall balance of payments has a surplus of Rs2.82 trillion.