Remittance inflow stands at Rs 221 billion in a month; Inflation up by three-fold to 6.34 %

Kathmandu / Oct 15: Remittance amounting to Rs 221 billion has entered the country during August 17 to September 16 (Bhadra) in the current fiscal year.

According to the ‘Current Economic and Financial Situation of the Country’ report based on the first two months of the fiscal year 2083/084 released today by the Nepal Rastra Bank, remittance inflow during Bhadra last fiscal year was Rs 174 billion 670 million.

In the first two months of the current fiscal year (Shrawan and Bhadra), remittance inflow increased by 23.9 percent, reaching Rs 436 billion 36 million.

During the same period last year, remittance inflow had increased by 33.1 percent. In the review period, remittance in US dollars increased by 13.5 percent, reaching Rs 2.85 billion while such inflow had increased by 27.6 percent last year.

During the review period, net secondary income (net transfer) reached Rs 469 billion 440 million. In the same period last year, the income was Rs 384 billion 880 million.

During the review period, the number of Nepali getting final labor approval for foreign employment was 78,320, and the number getting re-approval for labor permission was 51,136. During the same period last year, such number were 90, 198 and 45,884 respectively.

Inflation up by three-fold to 6.34 percent in mid-September

Consumer price inflation skyrocketed to 6.34 percent in mid-September of the current fiscal year, more than triple the rate recorded during the corresponding period last year. According to the latest report of Nepal Rastra Bank (NRB), inflation during the review period was driven largely by higher food prices and supply disruptions caused by floods and landslides.

The Current Macroeconomic and Financial Situation Report of Nepal, released by the central bank on Thursday, states that inflation stood at 6.34 percent between mid-August and mid-September of Fiscal Year 2026/27, up from 1.87 percent during the same period a year earlier. Inflation in mid-August of the current fiscal year was recorded at 5.96 percent.

The rise in consumer prices was primarily driven by increases in food and beverage costs. Inflation in the food and beverage category reached 5.69 percent during the review period, compared to a decline of 1.34 percent in the corresponding month of the previous fiscal year. Prices in the non-food and services category also increased by 5.69 percent, up from 3.70 percent year-on-year.

Traders attributed the increase in market prices largely to supply disruptions caused by floods and landslides, which damaged key road networks across the country, including sections of the Prithvi Highway. Major highways and road corridors in Kavrepalanchok, Sindhupalchok, Ilam, Rasuwa, Rukum West and Lamjung were affected following recent flooding incidents, including the August 26 flooding along the Bhotekoshi -Trishuli river corridor.

Within the food and beverage category, the year-on-year price index increased by 16.68 percent for ghee and oil, 15.99 percent for fruits, 12.14 percent for sugar and sugar products, 7.34 percent for meat and fish, 7.07 percent for vegetables, and 6.71 percent for spices.

Under the non-food and services category, transportation prices rose by 12.77 percent year-on-year, followed by alcoholic beverages at 8.83 percent, clothing and footwear at 7.06 percent, furnishing and household equipment at 6.01 percent, and tobacco products at 5.45 percent.

During the review period, inflation in rural areas stood at 6.78 percent, compared with 6.19 percent in urban areas.

Among the provinces, Madhesh Province recorded the highest inflation rate at 7.48 percent, while Sudurpashchim Province posted the lowest at 5.16 percent. By geographical region, the Tarai registered the highest inflation rate at 6.89 percent.