Inflation expected to stand at 14 percent in the next three months, central bank’s survey shows

In a survey, the central bank found that the median inflation expectation for one year stands at 13.5 percent.

NL Today

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Kathmandu: The inflation is expected to stand at 14 percent in the next three months, a survey of the Nepal Rastra Bank (NRB) shows.

In the Inflation Expectations Survey (IES) for the fourth quarter of FY 2021/22, the central bank has found the median inflation expectation for three months and one year ahead stand at 14 percent and 13.5 percent, respectively. 

The survey was conducted during July 4 -11 among 1,141 individual respondents from 31 market areas of 28 cities through field interviews.

“While median inflation expectation for three months has increased, median inflation expectation for one year ahead has been slightly decreased compared to mid-April, 2022. Median inflation expectations for three months and one year ahead stand at 14 percent and 13.5 percent respectively,” the report released by the NRB reads. 

In the survey, 94.7 percent of respondents have expected the price level to increase in the next three months, the report reads. Likewise, 94.4 percent of respondents have expected the price level to increase over the next one year. 

“The share of respondents expecting price increases in the next three months has slightly increased from mid-April, 2022, while the share of respondents expecting price increase over the next one year has slightly decreased. The share of respondents expecting price increase in the next three months across the entire listed product groups except for non-Food and services and real estate (Housing) has increased from mid-April, 2022.” 

Full report can be accessed here.