First 2-Month Macroeconomic Highlights: Inflation at 1.87%; Remittance Surges 33.1%, Foreign Currency Enough to Cover 16 Months Import

Summary

Nepal Rastra Bank reports 1.87% inflation and a 33.1% surge in remittance, with foreign currency reserves sufficient to cover 16 months of imports in the first two months of FY 2025/26.

Key Points
  • Inflation stood at 1.87 percent year-over-year as of mid-September 2025 compared to 3.86 percent a year ago.
  • Remittance inflows increased 33.1 percent to Rs.352.08 billion in the first two months of FY 2025/26.
  • Merchandise exports increased 88.6 percent while imports rose 16.2 percent, with total trade deficit increasing 8.6 percent to Rs.257.84 billion.
  • Gross foreign exchange reserves reached Rs.2881.35 billion, enough to cover 16 months of merchandise and services imports.
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