Economy

Inflation eases to 9.3 pc, salaries up by 22 percent

Published by Octron on November 15, 2009

Despite sustained high price of food commodities, prompted mainly by a huge rise in vegetables, the overall inflation rate eased slightly to 9.3 percent, thanks to easing price pressure on non-food commodities.

A press release issued by Nepal Rastra Bank (NRB) on Friday said that the consumer price index moderated to 9.3 percent in mid-October 2009 as against 14.1 percent in the same period last year.

The price index of the food and beverages group that commands a 53.20 percent weight in the CPI increased by 15.6 percent while the index of non-food and services group rose only 2.0 percent. The indices of food and beverages and non-food and services groups had risen 15.2 percent and 12.9 percent respectively in mid-October 2008, according to the release.

Among the items falling under the food and beverages group, the price index of sugar and sugar-related products increased a whopping 42.0 percent as compared to a 39.5 percent increase in the same period last year. Price of vegetables and fruits rose by 37.5 percent against last year´s decline of 10.1 percent. Similarly, the price indices of pulses as well as meat, fish and eggs increased 25.1 percent and 22.7 percent respectively.

Similarly, among the non-foods and services, the index of tobacco and related products rose by 17.0 percent whereas it was 12.7 percent in the same period last year. In contrast the price index of transport and communication declined 8.7 percent.

Region-wise, the price index for Kathmandu Valley rose 9.7 percent, followed by 9.4 percent in the Terai and 8.5 percent in the Hills, in the review period. The respective rates were 14.5 percent, 14.0 percent and 13.9 percent last year.

Similarly, wholesale price inflation rose to 14.8 percent compared to 9.3 percent a year ago. The indices of agricultural commodities and domestic manufactured commodities increased 33.8 percent and 5.2 percent respectively during the period while the price index of imported commodities declined 7.7 percent in the review period.

Within the domestic-manufactured commodities group, the price index of beverages and tobacco increased 16.3 percent compared to a rise of 9.5 percent a year ago.

Likewise, the overall year-to-year salary and wage rate index rose by 22.1 percent in the review period as compared to a rise of 9.0 percent a year ago. Of the salary and wage rate indices, the salary index increased by 32.8 percent. The increase in basic salary and allowances for civil servants and its simultaneous effect on salaries in the private sector contributed to such an increase in the salary index.

Source: Republica

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