Macroeconomic Summary of 10 Months: Inflation at 5.04%, Remittances Rises by 41.2%, Foreign Currency Enough to Cover 19.2 Months Import
Summary
Nepal Rastra Bank reports 5.04% inflation, a 41.2% increase in remittance inflows, and foreign exchange reserves sufficient to cover 19.2 months of imports in the first ten months of FY 2025/26.
Key Points
- Consumer price inflation rose to 5.04% year-over-year as of mid-May 2026, showing an increasing trend.
- Remittance inflows surged 41.2% to Rs. 1916.90 billion during the ten months of FY 2025/26 compared to last year.
- Gross foreign exchange reserves increased 38.3% to Rs. 3704.55 billion, enough to cover 19.2 months of merchandise and service imports.
- Trade deficit widened by 14.9% to Rs. 1443.68 billion amid a 14.2% increase in exports and 14.8% rise in imports in the review period.
