According to government figures released on Friday, the inflation in Nepal decreased to 7.38% in the month ending in mid-December, the lowest level in around eight months.
Since taking office as the leader of a seven-party coalition last month, Prime Minister Pushpa Kamal Dahal has vowed to rein in inflation, reduce rising interest rates, and stimulate economic growth.
According to data from the Nepal Rastra Bank (NRB), overall inflation in the month through mid-December was higher than the same period a year earlier, when it was 7.11%, but lower than the month before, when it was 8.08%.
Inflation in the food and beverage industry decreased from 7.38% to 5.85% last month. Inflation in the non-food and service sectors only marginally reduced from 8.63% to 8.59% last month.
Remittances from the roughly five million Nepalis who work primarily in the Middle East, Malaysia, and Korea increased by 13.1% to $3.71 billion, according to additional NRB data.
As of mid-December, Nepal’s economy—which depends on remittances, aid, and tourism—saw a 64.0% increase in tourism-related revenue as travellers returned to the Himalayan country, which is home to eight of the world’s 14 highest mountains, including Mount Everest.
According to figures from the central bank, the nation’s overall foreign exchange reserves increased by 3% by mid-December to $9.82 billion, or 8.7 months’ worth of imports. The fiscal year of Nepal spans from mid-July to mid-July.
