Country receives more than Rs 407 billion remittances in three months; Consumer inflation comes down to 4.82 %

Kathmandu / Nov 19: The country has received Rs 407.31 billion in remittances in the first three months of the current fiscal year.

“Remittance inflows increased 11.5 per cent to Rs 407.31 billion in the review period compared to an increase of 25.8 per cent in the same period of the previous year,” Nepal Rastra Bank (NRB) stated in the Current Macroeconomic and Financial Situation of Nepal Report, which is based on three months data ending Mid-October.

In US Dollar terms, remittance inflows reached 3.04 billion in the review period which was 2.76 billion in the same period of the previous year, according to the NRB.

The central bank said that the number of Nepali workers taking first-time approval for foreign employment stands at 110,654 and taking approval for renewed entry stands at 59,939 in the past three months. In the review period of the previous year, such number of workers taking time-time approval for foreign jobs was 113,397.

Current account surplus at Rs 111.87 billion

Likewise, the current account of the government remained at a surplus of Rs 111.87 billion in the review period compared to a surplus of Rs 59.65 billion in the same period of the previous year. “In the review period, net capital transfer amounted to Rs 2 billion and foreign direct investment inflow (Equity only) remained at Rs 4.81 billion,” according to the NRB.

Similarly, the Balance of Payments (BOP) remained at a surplus of Rs 184.99 billion in the review period while it was at a surplus of Rs 101.66 billion in the same period of the previous year.

The report stated that the gross foreign exchange reserves increased 9.4 per cent to Rs 2232.28 billion in mid-October 2024 from Rs 2041.10 billion in mid-July 2024.

It said that the year-on-year unit value export price index, based on customs data, increased 2.9 per cent and the import price index decreased 3.5 per cent in the past three months. The terms of trade index increased by 6.5 per cent in the review period.

The net services income remained at a deficit of Rs 23.29 billion in the review period compared to a deficit of Rs 29.39 billion in the same period of the previous year.

Exports and imports decrease

During the three months, the country’s exports and imports decreased by 6.1 per cent and 4.2 per cent, respectively. The exports decreased by 6.1 per cent to Rs 38.38 billion compared to a decrease of 2.3 per cent in the same period of the previous year. Exports to India, China and other countries decreased by 5.3 per cent, 24.8 per cent and 6.6 per cent respectively. Exports of soyabean oil, tea, particle board, shoes and sandals, and oil cakes, among others, increased whereas exports of zinc sheet, palm oil, cardamom, juice, and readymade garments, among others decreased in the review period.

The imports decreased 4.2 per cent to Rs 390.75 billion compared to an increase of 1.7 per cent a year ago. Destination-wise, imports from India, China and other countries decreased 3.9 per cent, 1.5 per cent and 7.9 per cent respectively.

The total trade deficit decreased 4 per cent to Rs 352.37 billion during the first three months of the current fiscal year. Such a deficit had increased 2.1 per cent in the same period of the previous year. The export-import ratio decreased to 9.8 per cent in the review period from 10 per cent in the corresponding period of the previous year.

The consumer price increased by 4.82 per cent in mid-October compared to 7.5 per cent a year ago. Food and beverage inflation stood at 7.18 per cent whereas non-food and service inflation stood at 3.49 per cent in the review period.

Under the food and beverage category, the year-on-year price index of vegetables increased by 25.15 per cent, pulses and legumes by 10 per cent, cereal grains and their products by 9.57 per cent and ghee and oil by 4.98 per cent but the price index of meat and fish sub-category decreased 1.18 per cent.

Consumer inflation comes down to 4.82 per cent

The consumer price inflation contained at 4.82 per cent in mid-October 2024 in comparison to 7.50 per cent a year ago.

According to Nepal Rastra Bank (NRB) data published on Tuesday, food and beverage inflation stood at 7.18 per cent whereas non-food and service inflation stood at 3.49 per cent in the review month.

The data showed that during the same period in the previous year, the price indices of these groups had increased by 8.48 per cent and 6.85 per cent respectively.

Under the food and beverage category, year-on-year price index of vegetable sub-category increased 25.15 per cent, pulses and legumes 10 per cent, cereal grains & their products 9.57 per cent and ghee & their products 9.57 per cent and ghee & oil 4.98 per cent while y-o-y price index of meat& fish sub-category decreased 1.18 per cent, spices 0.79 per cent and sugar & sugar products 0.78 per cent.

Under the non-food and services category, the year-on-year price index of the miscellaneous goods and services sub-category increased by 10.49 per cent, alcoholic drinks by 6.32 per cent, clothes and footwear by 6.12 per cent and furnishing and household equipment by 4.88 per cent.

During the review month, the year-on-year price index in rural areas increased by 5.00 per cent, while in urban areas, it rose by 4.76 per cent.

The NRB data showed that the y-o-y wholesale price inflation stood at 5.51 per cent in mid-October 2024 compared to 2.78 per cent a year ago.

The y-o-y wholesale price of consumption goods, intermediate goods, and capital goods increased 8.22 per cent, 4.36 per cent and 2.63 per cent respectively. The y-o-y wholesale price of construction materials decreased by 4.58 per cent in the review month.