Kathmandu: Nepal’s consumer inflation dropped to 3.85% between mid-August and mid-September 2024, marking a significant decline from the 8.19% recorded during the same period last fiscal year, according to the Nepal Rastra Bank's "Current Macroeconomic and Financial Situation" report.

The food and beverage sector saw an inflation rate of 5.03% in this period, compared to the 9.77% recorded last year. Key contributors to the rise within this sector included pulses and legumes, which saw a 10.80% price hike, vegetables at 9.84%, and fruits at 4.94%. However, the price index for spices dropped by 2.69%.

In the non-food and services sector, the inflation rate for miscellaneous goods and services rose by 8.71%, alcoholic beverages by 6.76%, and clothing and footwear by 6.08%. Home appliances saw a smaller increase of 4.88%, while insurance and financial services remained stable with no changes.

Geographically, rural areas experienced a slightly higher inflation rate of 4.04% compared to 3.78% in urban areas. Among provinces, Koshi Province recorded the highest inflation at 4.66%, while Bagmati Province had the lowest at 3.29%. Inflation in the Kathmandu Valley dropped to 3.49%, a significant decrease from last year's 9.83%.

In addition, wholesale inflation dropped to 2.75% during the same review period, down from 4.78% last fiscal year, with a 4.22% reduction in the cost of construction materials.