The Nepal Weekly 
June 11, 2024The y-o-y consumer price inflation moderated to 4.40 percent in mid-May 2024 compared to 7.41 percent previous year. Food and beverage category inflation stood at 6.27 percent whereas non-food and service category inflation stood at 2.96 percent in the review month, according to a report released by Nepal Rastra Bank on Monday.
Under the Non-Food and Services Category, y-o-y price index of miscellaneous goods & services sub-category increased 12.26 percent, education 5.64 percent and clothes & footwear 3.46 percent.
The y-o-y consumer price inflation in the Kathmandu Valley, Terai, Hill and Mountain region stood at 4.30 percent, 4.32 percent, 4.70 percent and 4.22 percent respectively in the review month. Such inflation in these regions were 7.68 percent, 7.15 percent, 7.57 percent and 7.12 percent respectively a year ago.
During the review period, merchandise exports decreased by 3.6 percent to Rs.126.17 billion compared to a decrease of 24.5 percent in the same period of the previous year. Destination-wise, exports to India and other countries decreased by 5.6 percent and 1.4 percent respectively, whereas exports to China increased by 68.1 percent. Exports of zinc sheet, particle board, juice, readymade garment, and oil cakes among others increased whereas exports of palm oil, soyabean oil, woolen carpet, tea, brans among others decreased.
In the review period, merchandise imports decreased by 2.4 percent to Rs.1303.36 billion compared to a decrease of 16.8 percent a year ago. Destination-wise, imports from India and other countries decreased by 3.4 percent and 20.8 percent respectively while imports from China increased by 34.4 percent.
Based on customs points, exports from Bhairahawa, Dry Port, Jaleswor, Kanchanpur, Krishnanagar, Mechi, Nepalgunj, Rasuwa and Tatopani increased whereas exports from all the other major customs points decreased in the review period. On the import side, imports from Dry Port, Jaleshwor, Kanchanpur, Krishnanagar, Nepalgunj, Rasuwa and Tatopani Customs Offices increased whereas imports from all the other major customs points decreased in the review period.
Total trade deficit decreased by 2.3 percent to Rs.1177.18 billion during the review period. Such deficit had decreased by15.9 percent in the corresponding period of the previous year. The export – import ratio nominally decreased to 9.7 percent in the review period from 9.8 percent in the corresponding period of the previous year.
Total trade deficit decreased by 2.3 percent to Rs.1177.18 billion during the review period. Such deficit had decreased by 15.9 percent in the corresponding period of the previous year. The export-import ratio decreased to 9.7 percent in the review period from 9.8 percent in the corresponding period of the previous year.
During the review period, merchandise imports from India against payment in convertible foreign currency amounted to Rs.122.02 billion. Such amount was Rs.119.6 billion in the same period of the previous year.
Remittance inflows increased by19.2 percent to Rs.1198.6 billion in the review period compared to an increase of 23.4 percent in the same period of the previous year. In the US Dollar terms, remittance inflows increased by 17.1 percent to 9.02 billion in the review period compared to an increase of 13.4 percent in the same period of the previous year.
Gross foreign exchange reserves increased 26.2 percent to Rs.1942.4 billion in mid-May 2024 from Rs.1539.36 billion in mid-July 2023. In the US dollar terms, the gross foreign exchange reserves increased 24.2 percent to 14.54 billion in mid May 2024 from 11.71 billion in mid July 2023, according to NRB report published on Monday.
Based on the imports of ten months of 2023/24, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 15.1 months, and merchandise and services imports of 12.6 months.
NEPSE index stood 1998.89 in mid-May 2024 compared to 1821.65 in mid-May 2023. 59. Stock market capitalization in mid-May 2024 stood Rs.3169.48 billion compared to Rs.2657.76 billion in mid-May 2023. 60. Number of companies listed at NEPSE reached 272 in mid-May 2024. Out of the total listing, 134 are Bank and Financial Institutions (BFIs) and insurance companies, 91 hydropower companies, 22 manufacturing and processing industries, 7 hotels, 7 investment companies, 4 trading companies and 7 others. The number of companies listed at NEPSE were 253 in mid-May 2023.
