Kathmandu: Nepal's annual average inflation reached 5.44% in the last fiscal year, staying within the expected range. According to the latest report from the Nepal Rastra Bank on the country's Macroeconomic and Financial Situation, both imports and exports saw a decline, with imports down by 1.2% and exports decreasing by 3%. The previous year had seen sharper declines of 16.1% and 21.4%, respectively.

On the positive side, remittance inflows increased by 16.5%, totaling Rs. 1445.32 billion. This was slightly lower than the 23.2% increase from the previous year. In US Dollar terms, remittance inflows rose by 14.5% to reach $10.86 billion, compared to a 13.9% rise the previous year.

The balance of payments showed a surplus of Rs. 502.49 billion, an improvement from the previous year's surplus of Rs. 285.82 billion. Nepal's gross foreign exchange reserves stood at $15.27 billion, enough to cover 13 months of merchandise and services imports.

Additionally, broad money (M2) expanded by 13.0%, with deposits at Banks and Financial Institutions (BFIs) also increasing by 13.0%. Private sector credit grew by 5.8%, with total deposits at BFIs amounting to Rs. 6452 billion and private sector credit reaching Rs. 5074 billion.