Nepal's inflation registered highest in six years: central bank

Annual consumer inflation in Nepal has registered at 8 percent in 2005-06, which is the highest rate in six years from 2000, a statement from the central bank of the country stated on Saturday.

As per the consumer inflation survey conducted by Nepal Rastra Bank in 2005-06, average annual consumer inflation stood at 8 percent compared to the level of 4.5 percent in 2004-05.

However, consumer price inflation ending mid-July 2006 stood at 8.3 per cent, according to the statement.

In 2000-01, consumer inflation stood at 2.4 percent. Similarly, in 2001-02, consumer inflation stood at 2.9 percent. In 2002-03, it stood at 4.8 percent and in 2003-04 and 2004-05, consumer inflation stood at 4 percent to 4.5 percent.

Giving reasons for the increased inflation, the statement said that the prices of petroleum products went up by 35.7 percent, which pushed up the indices of household goods and services as well as transportation fare in 2005-06 and put pressure on inflation.

In the review period, the index of food and beverage group and non-food and service group moved up by 7.8 percent and 8.1 percent, respectively

The less than normal rainfall during paddy plantation period ( June-August) badly affected paddy production in 19 districts, mostly in the eastern region of the country, according to the statement.

Meanwhile, according to the Department of Labor and Employment Promotion, the government provided final approval for foreign employment to 177,576 Nepali workers in 2005-06.

In the previous year, the department granted final approval to 137,678 Nepali workers for foreign employment. Malaysia, Qatar, Saudi Arabia and United Arab Emirates are the four major destinations for Nepali workers.

Source: Xinhua