Positive Economic Trends

The annual rate of inflation in Nepal eased to 3.75 per cent in mid-March from 4.82 per cent a year ago, slightly easing the burden on the consumers reeling from the onslaught of high inflation. This good news comes at a time when the wages of the people have stagnated for years now while the prices of goods and services have soared past affordability in some cases. Inflation and consumers' purchasing power go in opposite directions. Subsiding inflation means the goods and services have become more affordable, potentially bringing stability to an economy. That said, unless this positive development is felt by commoners at the bottom rung of the economic ladder, the progress doesn't mean much.