Numbers v reality

We need a more representative consumer price index to capture the real picture.

Consumer price inflation in Nepal has fallen to its lowest level in over four years. According to recent Nepal Rastra Bank data, it reached 2.77 percent in mid-May 2025. Food and beverage inflation is only 1.52 percent, while inflation for non-food items and services is 3.45 percent. Although low inflation appears to be good news for Nepali consumers, they don’t really feel the relief. In marketplaces and bazaars selling daily essentials, customers continue to haggle with sellers while complaining about high prices. It is still a daily struggle for many working-class Nepalis to afford basic necessities: the inflation claims by the central bank do not feel real.