Nepal inflation drops to 1 percent as demand stagnates
Summary
Nepal's inflation rate has dropped to a 22-year low of 1.11 percent due to weakened domestic demand caused by rising outmigration for foreign employment and stable external factors.
Key Points
- Nepal’s inflation fell to 1.11 percent in mid-November, the lowest in more than two decades.
- Sharp decline in domestic demand is linked to increased outmigration for foreign employment.
- Global economic slowdown, India’s stable economy, and lower global food prices contributed to the inflation drop.
- Supply disruptions at the northern border have increased costs for garments and footwear, pushing prices up in that sector.
