The New Nation - Internet Edition

XINHUA, Kathmandu

Driven by a significant rise in food and beverage prices besides non-food and services, inflation based on consumer price index swelled to 14.1 percent in mid- October 2008, against 6.3 percent during the corresponding period in the previous year in Nepal.

According to Tuesday's The Kathmandu Post daily, inflation was higher in mid-October than in mid-September when prices had gone up by 13.5 percent. Nepal Rastra Bank (NRB), the central bank of the country, said in a statement on Monday that inflation had more than doubled in review period this year as the food and beverage group witnessed a 15.2 percent rise in prices and the non-food and service group went up by 12.9 percent. Their prices had gone up by 9.5 percent and 2.9 percent respectively during the same period last year.

Sugar products became dearer by 39.5 percent while the price of oil and ghee-based products shot up by 35.4 percent. Sugar had gone down by 18.4 percent in the same period last year. Oil and ghee had witnessed a price rise of 12.8 percent.

The price index of transport and communication and building materials soared by 23.1 and 18.3 percent respectively this year against minus 0.5 and 2.5 percent last year.