Central bank, government fail to crack whip on price hike; vegetable, meat prices go overboard
The price hike in vegetables and meat under the food and beverage group has pushed the inflation above double digit, making central bank and government mere spectators, despite Monetary Policy and Fiscal Policy both promising to contain inflation at seven per cent.
The year-on-year inflation – measured by the consumer price index – increased by 10.3 per cent in mid-December 2013, compared to 10.4 per cent in the same period of a fiscal year ago, said the central bank today.
"The indices of food and beverage group and non-food and services group increased by 14.5 per cent and 6.7 per cent respectively in the fifth month of the current fiscal year against increased by 8.7 per cent and 11.8 per cent in the same period of last fiscal year," it said, adding that under the items of the food and beverage group, price index of vegetables sub-group increased by the highest rate of 36.6 per cent compared to an increase of only four per cent in the same period of the last fiscal year. "The price indices of meat and fish sub-group and fruits sub-group which had increased by 13.3 per cent and seven per cent in the same period of previous year, went up by 27.9 per cent and 16.8 per cent, respectively in the fifth month of the current fiscal year."
Likewise, the price index of clothing and footwear increased by 11.7 per cent compared to an increase of 13.9 per cent in the same period of the last fiscal year, whereas the price indices of furnishing and household equipment sub-group and miscellaneous goods and services sub-group increased by 8.4 per cent and 8.2 per cent respectively against an increase by 15.6 per cent and 10.8 per cent respectively in the same period of the last fiscal year.
Region-wise, the price indices in Tarai increased by 10.9 per cent followed by Kathmandu Valley and Hilly region with 10.7 per cent and 8.7 per cent against the increment of 11.1 per cent, 8.8 per cent and 11.2 per cent, respectively in the same period of the last fiscal year.