Inflation at 21-Year Low
Inflation in Nepal has fallen to a 21-year low, with a record-low rate of 1.87 percent, due to weak demand and economic stagnation.
According to the Nepal Rastra Bank, the country's central bank, inflation stood at 1.87 percent in mid-September, down from 3.86 percent a year earlier.
The recent political uncertainty, along with floods and landslides, has further curtailed spending.
- Subdued domestic demand reflects a faltering economy weighed down by corruption and political instability.
- The exodus of Nepali migrant workers and students abroad has also affected consumption.
The last time inflation was this low was during mid-May to mid-July of fiscal year 2003–04, when it measured 1.8 percent.
Author's summary: Nepal's inflation hits 21-year low at 1.87 percent.