Inflation Analysis and Price Situation--2006-08_Vol I No1(Mid_August 2006)

INFLATION ANALYSIS AND PRICE SITUATION

2063 SHRAWAN (MID-AUGUST 2006) (Special Issue on Petroleum Products Price)

NEPAL RASTRA BANK

RESEARCH DEPARTMENT

PRICE DIVISION BALUWATAR, KATHMANDU

Phone/Fax: 977-1-4411782

Email : [email protected]

www.nrb.org.np

CONTENTS

1. Inflation Projection for 2063/64 (2006/07) in Nepal 2. Price Situation - Mid-August, 2006 * Consumer Price * Wholesale Price * Salary and Wage rate 3. Boxes: 1. Inflation Analysis: Global Scenerio 2. Central Bank Responses to Inflationary Shock 3. World Petroleum Produc;tion: Demand & Supply 4. Petroleum Product Pricing in Nepal 5. Current Financial Situation of Nepal Oil Corporation 4. Tables:

* Consumer Price Index (CPI) * Wholesale Price Index (WPI) * Salary and Wage Rate Index (SWRI) * Average Retail Prices of Selected Commodities in Border Markets * Weekly Average Retail Prices of Some Essential Commodities

INFLATION AND PRICE SITUATION : AT A GLANCE 2005/06 2006/07*

• World Inflation • Inflation in India • Inflation in Nepal

3.8 4.4 8.0

3.2 5.0-5.5

6.0

• CPI (Mid-August) • Y-O-Y Change in CPI • M-O-M Change in CPI • Food and Beverages Group - Index - Y-O-Y Change - M-O-M Change • Non Food and Serveses Group - Index - Y-O-Y Change - M-O-M Change

170.7 7.3 2.3

165.0

6.6 2.9

177.2

8.0 1.6

182.4 6.9 1.0

175.0 6.1 1.2

191.0 7.8 0.7

• WPI(Mid-August) - Index - Y-O-Y Change - M-O-M Change • SWRI(Mid-August) - Index - Y-O-Y Change - M-O-M Change

133.5

9.3 2.8

101.9

1.9 1.9

142.4 6.7 1.8

109.3 7.3 2.9

* Projected.

1

INFLATION ANALYSIS AND PRICE SITUATION

1. Inflation Projection for 2063/64 (2006/07) A major objective of Nepal Rastra Bank (NRB) is to maintain price stability. Accordingly, NRB makes inflation rate projection in the announcement of annual monetary policy and attempts to control the estimated level of inflation during the period. The average

annual inflation rate projected for the fiscal year

2063/64 is 6.0 percent. While projecting the inflation for the current FY 2063/64, it is assumed that the rate may move upward due to the probable unexpected rise in prices of petroleum products to 9.0 percent. There are some major assumptions of the projections:

• lagged effect of hike in petroleum prices of February 2006.

• Favorable weather condition for the production of grains and cereal articles

• Indian inflation would remain within the range of 5.0-5.5 percent as estimated by RBI for FY 2006/07.

2. Price Situation

Consumer Price

(a) Overall Index

The year on year (y-o-y) consumer price inflation

increased by 6.9 percent in mid-August 2006

compared to an increase of 7.3 percent in the

corresponding period of the previous year. The pass-through effect of two times rise in the prices of petroleum products in 2005/06 as well as an increase in the prices of transportation fare in the same period together with a sharp rise in the prices of pulses mainly accounted for consumer price inflation of 6.9 percent in the review period. On the other hand, a comparatively low rise in the prices of grains and cereal products eased inflation relative to that of the previous year.

(b) Food and Beverages Group

In the review period, the y-o-y index of food and

beverages group surged up by 6.1 percent compared

to an increase of 6.6 percent in the corresponding

period last year. Despite a marginal rise in the prices of grains and cereal products, a sharp increase in the prices of spices and pulses pushed up the index of this group. The indices of pulses (23.6 percent), spices (10.5 percent), grains and cereal products (7.4 percent), milk and milk products (6.2 percent), meat, fish and eggs (5.2 percent), beverages (4.8 percent), vegetables and fruits (4.3 percent), sugar and related products (3.5 percent), restaurant meals (2.4 percent) and oil and ghee (1.0 percent) all increased in the review period.

Y-O-Y CPI Inflation

0

1

2

3

4

5

6

7

8

9

Overall Food and Beverages Non-food and Services

Group

Percent

Mid-August 2005 Mid-August 2006

Indices of Food and Beverages Group

0

50

100

150

200

250

M i d-August 2005 M i d-August 2006

Months

Index

Overall Grains and Cereal ProductsVegetables and Fruits SpicesMilk and Milk Products Oil and GheeBeverages Restaurant Meals

Annual Inflation

4.8

2.9

4.0

4.5

8.0

6.0

0

2

4

6

8

10

2001/02 2002/03 2003/04 2004/05 2005/06 2006/07*

Year

Percent

NCPI

* Projected for FY 2006/07

2

Box 1: Inflation Analysis: Global Scenario

On the eve of the FY 2006/07 (mid-July, 2006) headline inflation in several countries firmed up in response to sustained

pressures from record high international crude oil prices. Many central banks, thus, tightened their monetary policies to contain inflation and inflationary expectations. In Nepal, NRB also announced slightly tightened Monetary Policy for FY 2006/07 with projecting annual average rate of inflation to be 6.0 percent. However, the policy recognized the fact that the projection might be about 3.0 percentage point higher if the Government of Nepal revised upward the prices of

petroleum products.

In the first month of the FY 2006/07 (mid-July 2006 - mid-Aug. 2006), headline inflation in Nepal as measured by

National Urban Consumer Price Index (NUCPI) stood at 6.9 percent. Along with higher oil prices, primary food articles (rice & rice products, pulses etc.) and transportation fares also posed upward pressure in inflation.

Global Inflation: Some numbers

Headline inflation moved up around the globe with the increase in international crude oil price. Inflation edged up sharply

in major advanced economies in June 2006 with the oil price reaching a new high of over $ 75 a barrel.

On y-o-y basis, U.S. inflation in June 2006 reached to 4.3 percent and 2.5 percent each in Euro area and U.K. The

inflation rate for some selected developed & developing economics for May 2006 and May 2005 are shown in Table.

CPI Inflation

Developed Economies 2005 May 2006 May

Australia Canada Euro Area Japan U.K. U.S.

2.4 1.6 2.1 0.2 2.0 2.5

3.0 2.8 2.5* 0.6 2.5* 4.3*

Developing Economies

Brazil India Indonesia Israel Korea Philippines South Africa Thailand Nepal

7.3 3.7 7.4 0.2 2.7 7.6 3.3 3.8 7.3**

4.0* 6.3 15.5* 3.5 2.6* 6.7 3.9 5.9* 6.9**

* Data for June 2006 ** Data for mid-August. Note: Indian data on inflation pertain to CPI for industrial workers. Source: IMF, websites of various central banks, The Economist and the OECD.

(c) Non-food and Services Group

The index of non-food and services group increased

by 7.8 percent compared to an increase of 8.0

percent in the same period last year. The pass through effect of rise in the prices of petroleum products two times in 2005/06 as well as the lagged effect of in the prices of transportation fare in February 2006, accounted for the rise in the price index of this group. The indices of transport and communication (17.9 percent), housing goods and services (14.4 percent), tobacco and related products (6.5 percent), footwear (2.8 percent), medical and personal care (2.5 percent), cloth, clothing and sewing services (1.7 percent) and education, reading and recreation (0.7 percent) all increased in the review period.

Indices of Non-food and Services group

0

50

100

150

200

250

300

Overall

Cloth, Clothing

& Sewing

Services

Footwear

Housing Goods

and Services

Transport and

Communication

Medical and

Personal Care

Education,

Reading and

Recreation

Tobacco and

Related

Products

Commodities

Index


3

(d) Regional Indices

Region-wise, the price indices of Terai increased by higher rate of 7.5 percent followed by Hills at 6.8 percent and the Kathmandu Valley at 5.9 percent. In the corresponding period of the previous year, the indices of Hills had increased at the higher rate of 8.7 percent, followed by Terai at 7.4 percent and the Kathmandu Valley at a lower rate of 6.1 percent.

(e) Core CPI inflation

The y-o-y core inflation increased by 4.6 percent in mid-August 2006 compared to an increase of 4.5 percent a year ago.

(f) M-O-M CPI Inflation

The overall price index in Mid-August, 2006

increased by 1.0 percent compare to that of mid-July

2006. During the review month, the indices of food and beverages and non-food and services group increased by 1.2 percent and 0.7 percent, respectively. The indices of Terai and Hills increased by 1.0 percent each and Kathmandu valley increased by 0.9 percent.

Regionwise Consumer Price Indices

150

160

170

180

190

Overall Kathmandu Terai Hills

Region


M-O-M CPI Inflation

0

1

2

3

4

Overall Food and Beverages Non-food and Services

Groups

Percent

Mid-July 2006 Mid-August 2006

Box 2: Central Bank Responses to Inflationary Shock

Many central banks around the world tighten monetary policy to contain inflation & inflationary expectation especially in view of possible pass-through of previous increase in oil prices. In an open economy, central bank responded the shocks by adjusting policy interest rates.

• U.S. Federal Reserve raised Fed fund rate by 25 basis points in May 2006 and 25 basis point in June 2006 to 5.25 percent. Thus, Fed fund rate increased by 425 basis points since the tightening began in June 2004.

• In Euro area, European Central Bank raised key policy rate by 25 basis points in June 2006, a total increase of 75 basis points since December 2005.

• Reserve Bank of Australia also raised policy interest rate by 25 basis points to 5.75 percent in response to strong economic activity & underlying inflationary pressures.

• In U.K., on the other hand, Bank of England after cutting its policy rate by 25 basis point on August 4, 2005 has kept unchanged since then.

• In Japan, y-o-y consumer price inflation has turned positive since January 2006. Accordingly, Bank of Japan on July 14, 2006 decided to increase the un collateralized overnight leading rate by 25 basis points after maintaining zero interest rates for an extended period.

• In Thailand, Bank of Thailand raised policy rates by 25 basis points each in April and June 2006 to 5.0 percent a total hike of 275 basis points since March end 2005.

• Bank of Korea raised the policy rate by 25 basis points to 4.25 percent in June 2006, total of 100 basis points since

October 2005.

• The Bank of Indonesia, which had raised policy rates by 425 basis points during July - December 2005, cut the rate by 25 basis points each in May and July 2006 to 12.25 percent to support growth.

• In Nepal, the monetary policy announced in July, 2006 also hike up the bank rate by 25 basis points to 6.25 percent.

Source: IMF, websites of various central banks, The Economist and the OECD.

4

Wholesale Price

(a) Overall Index

The y-o-y wholesale price inflation increased by 6.7

percent in mid-August 2006 compared to an increase

of 9.3 percent in the corresponding period of the

previous year. Despite a decline in the prices of fruits and vegetables in the review period, a lagged effect of upward price revision in petroleum products in February last fiscal year and sharp rise in prices of pulses, spices, cash crops and construction materials pushed the wholesale price index up.

(b) Agricultural Commodities

In the review period, the index of agricultural

commodities increased by a lower rate of 4.5 percent

compared to the growth of 9.9 percent during the

corresponding period last year. Such growth is mainly attributable to the rise in the prices of food-grains, cash crops as well as pulses livestock. The indices of pulses (20.6 percent), spices (13.4 percent), cash crops (11.9 percent), food-grains (9.0 percent) and livestock production (5.1 percent) increased respectively whereas the index of fruits and vegetables (12.6 percent) declined sharply in the review period.

National Wholesale Price Index (1999/00=100)

133.5 134.2123.7

138.9142.4 140.2132.6

152.8

0

50

100

150

200

Overall Index Agricultural Commodities Domestic Manufactured

Commodities

Imported commodities

Groups

Index


Sub-group Indices of Agricultural Commodities

0.0

40.0

80.0

120.0

160.0

200.0

Overall

Foodgrains

Cash

Crops

Pulses

Fruits

and

Vegetables

Spices

Livestock

Production

Commodities

Index


Box 3: World Petroleum Production: Demand & Supply

In 2003, USA, Britain and their allies launched an attack on Iraq. This conflict led to cut down the global oil production resulting to increase the gap between production and supply of petroleum products. Since then, the global oil price tended to increase steadily upward to mark the unpredicted high of U.S.$ 75 per barrel in June 2006. However, the prices of oil products declined and it presently stands around $ 58 per barrel. The volatility of the global oil prices have multiple effect in the world economy as well as Nepalese economy especially in driving up inflation and inflationary expectation.

Table 1: World Petroleum Production, Demand & Supply, 1995-2005

(Thousand Barrels per Day)

Year Production Demand Supply 1 2 3

1 2 3 % change % change % change

1995 26004 69984 70314 - - -

1996 26461 71539 71960 2 2 2

1997 27710 73293 74185 5 2 3

1998 28774 73945 75679 4 1 2

1999 27579 75596 74879 -4 2 -1

2000 29267 76619 77793 6 1 4

2001 28344 77406 77717 -3 1 0

2002 26352 78082 76957 -7 1 -1

2003 27822 79742 79565 6 2 3

2004 29924 82453 83005 8 3 4

2005 31155 83987 84411 4 2 2

Source: Energy Information Administration, Official energy statistics for the US government. The table 1 shows the aggregate production, demand and supply of the world petroleum based on the data from 1995 to 2005. In 1999, the production and supply of oil prices both declined by 4.0 percent and 1.0 percent respectively. The same trend appeared in 2002 and both declined by 7.0 percent and 1.0 percent respectively, whereas in 2001, the production declined by 3.0 percent and supply stood at par of the previous year. However, for remaining years, the production increased at a higher level and supply followed it at a lower rate. During the period, demand rose marginally in all of the years but the production and supply showed a fluctuating trend. The fluctuation in the production market had affected the supply side, consequently, supply pushed market price tended to change periodically and the trend of fluctuation hit on the oil prices as demand was persistently increased.

contd..

5

Table 2: World Supply – Demand Balance of Oil (Millions barrel per day)

Item 2003 2004 2005 2006P 2006P

1 2 3 4 5 Q1 Q2 Q3 Q4

Demand

OECD 48.7 49.5 49.6 49.9 50.2 48.8 49.9 50.8

Non-OECD 31.2 33.0 34.4 35.6 35.1 35.2 35.4 36.8

China 5.6 6.5 6.9 7.4 7.2 7.3 7.4 7.6

Total 79.9 82.5 84.0 85.6 85.3 84.0 85.4 87.6

Supply

Non-OPEC 48.9 50.1 50.1 50.9 50.7 50.4 51.0 51.6

OPEC 30.7 32.9 33.9 34.1 33.7 33.5 34.5 34.7

Total 79.6 83.1 84.0 85.0 84.4 83.9 85.5 86.3

Stock changes 0.3 -0.6 -0.1 0.5 0.9 0.1 -0.1 1.3

Source: Energy Information Administration, Official energy statistics for the US government. P : Projections

With limited surplus global crude oil production capacity and the U.S. oil production and refining industries still to recover fully, oil prices are expected to remain firm in the near future (Table 2). The Energy Information Administration (EIA) of the US, therefore, expects WTI prices to average US $ 69.1 per barrel in calendar year 2006, an increase of about 22 percent over the price prevailing in 2005 (US $ 56.5 per barrel).

Table 3: The US and Brent Petroleum, 1995 - 2005

Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

US Price/barrel 18.40 22.03 20.61 14.40 19.30 30.26 25.95 26.15 30.99 41.47 56.70

Brent Price/barrel 17.02 20.67 19.09 12.72 17.97 28.50 24.44 25.02 28.83 38.27 54.52

US % change - 19.7 -6.4 -30.1 34.0 56.8 -14.2 0.8 18.5 33.8 36.7

Brent % change - 21.5 -7.6 -33.4 41.3 58.6 -14.2 2.4 15.2 32.7 42.5

Nepal % change* - 7.8 -1.4 -14.8 15.9 25.8 -11.7 15.6 8.5 20.3 31.1

Source: Energy Information Administration, Official energy statistics for the US government.

*: Nepal Rastra Bank, Research Department, Price Division.

Table 3 presents the data of US and Brent Oil prices. Brent is the oil-distributing hub in Europe. The table shows that Brent price is lower than that of the US market price. During 1995 to 2005, it is observed that the oil prices had dramatically fluctuated. In Brent, the price rose unexpectedly to $54.52 in 2005 from $17.02 per barrel in 1995 level. Similarly in US market, for the same period, the price of petroleum products stood at $56.70 and $18.40 per barrel respectively. During this decade the Brent and U.S. price rose 321.50 percent and 308.15 percent respectively.

Figure 1. Price Trend of Oil Products

( On an annual average basis)

-40

-30

-20

-10

0

10

20

30

40

50

60

70

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Year

Percent

Brent Nepal

Figure I shows that Brent oil prices increased by 21.5 percent in 1996. Since then, declining trend in global prices reached to -33.4 percent in 1998 possibly due to crisis in South East Asian economies. The prices again moved up to a increase of 58.6 percent in 2000. However it declined by 14.2 percent in 2001. After 2002 to 2005, the prices increased widely and reached to 42.5 percent level in 2005. Nepalese oil prices followed the trend of Brent prices during the period. However, since 2003 to date, the Nepalese oil prices stood at below the level of Brent oil prices.

6

(c) Domestic Manufactured Commodities

In the review period, the index of this group

increased by a higher rate of 7.2 percent due to the

rise in price of construction materials compared to a

rise of 4.0 percent during the same period of the

preceding year. The indices of construction materials (12.9 percent), beverages and tobacco (6.4 percent), food-related products (5.6 percent) and others (2.8 percent) all increased in the review period.

Sub- group Ind ices o f Domest ic M anuf act ured

Commodit ies

0

40

80

120

160

200

Overall Food-

Relat ed

Product s

Beverages

and Tobacco

Const ruct ion

Materials

Others

Commodit ies


Box 4: Petroleum Product Pricing in Nepal

Price of petroleum products are fixed by the Government of Nepal (GoN). So, this product is classified as government controlled goods in CPI. Nepal Oil Corporation, a government undertaking, is a sole authority to import and supply all articles of oil products and it imports and distributes the products to private petroleum dealers. The dealers then determine their retail prices for ultimate consumers.

Table 4: Periodic Price Trend of Petroleum Products in Nepal(Per Ltr / NRs.)(1994-2006)

FY Effective Date Petrol % Change Diesel % Change Kerosene % Change LPG Per Clnd % Change

1994/95 27 Dec 94 29.00 0.0 12.00 0.0 8.50 -5.6

1995/96 04 Apr 96 31.00 6.9 13.50 12.5 9.50 11.8 305.00

11 Jul 96 34.00 9.7 14.00 3.7 9.50 0.0 380.00 24.6

1996/97 13 Jun 97 39.00 14.7 17.50 25.0 11.00 15.8 380.00 24.6

25 Jun 97 39.00 0.0 15.50 -11.4 10.50 -4.5 495.00 30.3

1997/98 39.00 0.0 15.50 0.0 10.50 0.0 465.00 22.4

1998/99 17 Jul 98 40.00 2.6 16.50 6.5 10.50 0.0 465.00 0.0

16 Jan 99 40.00 0.0 15.50 -6.1 10.50 0.0 465.00 0.0

1999/00 27 Oct 99 40.00 0.0 23.00 48.4 13.00 23.8 465.00 0.0

2000/01 14-Oct-00 47.00 17.5 27.50 19.6 26.00 100.0 550.00 18.3

16-Nov-00 47.00 0.0 27.50 0.0 22.00 -15.4 550.00 0.0

17-Jan-01 46.00 -2.1 26.50 -3.6 17.00 -22.7 550.00 0.0

2001/02 02 Jan 02 46.00 0.0 26.50 0.0 17.00 0.0 550.00 0.0

2002/03 23-Nov-02 52.00 13.0 26.50 0.0 17.00 0.0 650.00 18.2

26-Mar-03 56.00 7.7 35.50 34.0 28.00 64.7 700.00 7.7

20-Apr-03 56.00 0.0 33.50 -5.6 27.00 -3.6 700.00 0.0

2003/04 03 Jul 04 54.00 -3.6 31.00 -7.5 24.00 -11.1 700.00 0.0

2004/05 12 Aug 04 56.00 3.7 31.00 0.0 24.00 0.0 725.00 3.6

18 Sep 04 56.00 0.0 35.00 12.9 28.00 16.7 750.00 3.4

10 Jan 05 62.00 10.7 41.00 17.1 36.00 28.6 850.00 13.3

12 Feb 05 62.00 0.0 41.00 0.0 34.00 -5.6 800.00 -5.9

21 Jun 05 62.00 0.0 41.00 0.0 34.00 0.0 900.00 12.5

2005/06 19 Aug 05 67.00 8.1 46.00 12.2 39.00 14.7 900.00 0.0

18 Feb 06 67.00 0.0 52.50 14.1 47.71 22.3 900.00 0.0

Source: Nepal Rastra Bank, Research Department, Price Division. In FY 1995/96, the prices of petroleum products viz. petrol, diesel, kerosene and LPG were registered Rs. 31, Rs. 13.50, Rs. 9.50, Rs. 305, respectively. During a decade, the prices of these products were increased more than double and recorded to Rs. 67, Rs. 52.50, Rs. 47.70 and Rs. 900, respectively. In review period, the prices was revised 23 times and the mounting prices affected the overall economy.

Contd..

7

The Tenth Plan (2002-2007) has the program to strengthen the management capacity of NOC, as well as to introduce measures for reducing leakages. The Plan also ensured about the private sector participation in the activities of NOC. It is expected that the effective implementation of these plans and policies would streamline continuous supplies of petroleum products and enable NOC to become financially viable.

Table 5 : Prices of Petroleum Products in Nepal (In US$)

Exchange Rate FY

with USD/ 1 NPR*

Petrol %

Change Diesel

% Change

Kerosene %

Change LP Gas

( Per Clnd)

%

Change

1986 17.60 0.62 0.43 0.33

1987 21.10 0.55 -11.49 0.36 -16.59 0.27 -16.59

1988 21.80 0.59 7.95 0.34 -3.21 0.26 -3.21

1989 23.50 0.55 -7.23 0.32 -7.23 0.24 -7.23

1990 27.40 0.69 26.32 0.33 4.06 0.25 2.92

1991 29.10 0.67 -3.36 0.31 -5.32 0.25 0.30

1992 42.70 0.59 -12.63 0.23 -25.52 0.19 -25.82

1993 42.60 0.64 9.59 0.26 9.42 0.21 12.76

1994 49.00 0.59 -7.76 0.24 -4.43 0.19 -9.44

1995 49.11 0.59 -0.22 0.24 -0.22 0.17 -9.54

1996 50.45 0.64 9.09 0.27 11.54 0.19 8.80 6.79

1997 56.25 0.69 7.63 0.29 7.63 0.19 1.49 7.78 14.57

1998 56.75 0.69 -0.88 0.27 -6.89 0.19 -3.19 8.19 5.35

1999 67.60 0.59 -13.90 0.24 -13.34 0.16 -16.05 6.88 -16.05

2000 68.15 0.59 -0.81 0.34 42.59 0.19 22.81 6.82 -0.81

2001 70.40 0.66 12.94 0.39 14.34 0.31 61.34 7.81 14.50

2002 74.65 0.62 -7.04 0.35 -8.01 0.23 -26.01 7.37 -5.69

2003 78.00 0.68 9.85 0.39 10.51 0.29 27.23 8.46 14.85

2004 74.75 0.72 6.72 0.41 5.71 0.32 10.81 9.36 10.67

2005 74.14 0.80 11.28 0.51 22.94 0.42 31.07 10.86 15.95

2006 70.35 0.96 19.80 0.71 39.40 0.62 47.44 12.79 17.82

* : Source : Nepal Rastra Bank (Year end basis) The table 5 presents the annual average of retail prices of the different oil products in Nepal in US dollar terms. The table further shows that rate of price changes in petrol, diesel and kerosene is higher compared to that of LP Gas. In FY 2006, prices of petrol, diesel and kerosene increased by 19.80 percent, 39.40 percent and 47.44 percent respectively. However, the price of LPG increased only by 17.82 subsidizing percent. The Government of Nepal still subsidizes on LPG and kerosene prices.

Nepal imports all oil products from Indian Oil Corporation. So, Nepalese and Indian petroleum prices have similar trend in the market. The following table and diagram shows the price trend of petroleum products in Nepal and India.

Table 6 : Percent Price Change in Petroleum Products (Nepal and India)

Period April 2001 January 2002 January 2003 January 2004 January 2005 January 2006

Nepal 35.4 -9.5 4.3 20.7 11.1 30.1

India 43.5 -5.4 24.2 13.7 18.1 36.9

Source : Nepal Rastra Bank. Figure 2 shows the similar trend of Nepalese and Indian oil price movement with Brent oil prices, in 2001. The prices in Nepal and India increased by 35.4 percent and 43.5 percent respectively. In 2002 the prices in both countries declined by 9.5 percent and 5.4 percent respectively. In 2003 Nepalese oil prices increased by only 4.3 percent and Indian prices sharply increased by 24.2 percent. In 2004, the increase in the Nepalese oil prices is higher than that of Indian prices. However, in 2005 and 2006, the level of price increase was below to Indian prices.

Figure 2 : Price Trend of Petroleum Products*

4.3

20.7

11.1

30.1

43.5

24.2

18.1

36.9

-9.5

35.4

-5.4

13.7

-20

-10

0

10

20

30

40

50

01.04.'01 01.01.'02 01.01'03 01.01.'04 01.01.'05 01.01.'06

Period

Percent

Nepal India

8

(d) Imported Commodities


increased by 10.0 percent compared to an increase of

11.7 percent during the corresponding period in the previous year. The pass through impact of the revised prices of petroleum products two times in the review year affected the index of petroleum products and coal that exerted an upward pressure on the index of this group. The price index of petroleum products and coal (24.2 percent), others (10.6 percent), chemical fertilizers and chemical goods (6.1 percent), transport vehicles and machinery goods (2.0 percent) and textile and related products(0.5 percent) increased in the review period. In contrast, the price indices of electric and electronic goods and drugs and medicine declined by 1.5 percent and 0.2 percent respectively.

(f) M-O-M WPI Inflation

The overall wholesale price index on m-o-m basis in

mid-August, 2006 increased by 1.8 percent compare

to that of mid-July 2006. During the review month, the indices of agricultural, domestic manufactured and imported commodities group increased by 2.0 percent, 2.6 percent and 1.1 percent, respectively.

Sub-group Indices of Imported Commodities

0

40

80

120

160

200

240

280

320

Overall Petroleum

Products

and Coal

Chemical

Fertilizers

and

Chemical

Goods

Transport

Vehicles

and

Machinery

Goods

Electric

and

Electronic

Goods

Drugs and

Medicine

Textile-

Related

Products

Others

Commodities

Index


M-O-M WPI Inflation

-2

-1

0

1

2

3

4

5

6

Overal l Agr icult ural

Labourer

Indust r ial

Labourer

Const ruct ion

Labourer

Gr oup

M id-July 2006 M id-August 2006

Box 5: Current Financial Situation of Nepal Oil Corporation

Nepal Oil Corporation, the only state owned importer and distributor of oil products in Nepal is facing financial crisis. Its monthly operating loss reached to Rs. 3.12 crores and the cumulative loss is accounted Rs.1419.82 crores on November 2006.

Table 7: NOC's Monthly Profit/Loss Calculation as at November 2006

NOC's Profit/Loss Position (Prices are W/O VAT) Petrol Aviation Fuel Diesel LP Gas Kerosene

Estimated Import/Sales as per FY 063/064 Projection 7,200 6,700 28,300 8,000 23,300

Depot Landed Cost, N.Rs./KL or Cyld in case of LPG 53,035.59 49,178.06 45,365.65 931.49 47,413.79

Ex-Depot Selling Price, N.Rs./KL or Cyld for LPG 56,592.15 68,125.97 44,667.47 718.72 45,519.69

Profit/Loss Per Kl (or Per Mt. for LPG) 3556.56 18947.91 -698.18 -212.77 -1894.09

Profit/Loss Per Litre (or Per Cyld. for LPG) 3.56 18.95 -0.70 -212.77 -1.89

Monthly Profit/Loss, Rs. 25,607,231 126,951,009 -19,758,475 -119,867,215 -44,132,396

Net Estimated Monthly Loss to NOC, (in Rs.) -31,199,847

Total Government Rev. (N.Rs/Lit or Cyld) 24.01 10.78 9.51 192.78 1.98

Monthly Govt. Revenue in Crores (in Rs.) 17.28 2.89 26.92 10.86 4.61

*Total Monthly Govt. Revenue 62.57

Net Estimated Monthly Loss to NOC in Crores NRs. -3.12

Source : Nepal Oil Corporation - Exchange rate : 1US$=72.1 Rs.(November 01, 2006) The table indicates that NOC distributes Diesel, LP Gas and Kerosene at a price below the cost whereas there is profit in petrol (Rs.3.56) and aviation fuel (Rs.18.95) per liter. In aggregate, there is Rs. 62.57 crores monthly revenue for the government by selling these products. The monthly loss recorded about 3.12 crores for NOC.

9

Salary and Wage Rate

(a) Overall Index

The National Salary and Wage Rate Index (2004/05

= 100), on a y-o-y basis, increased by 7.3 percent in mid-August 2006. Such index had increased by 1.9 percent a year ago. The rise in wages of laborers as well as the 10 percent rise in the salary of government employees as announced in the budget speech of the fiscal year 2006/07 accounted for the growth of salary and wage inflation.

(b) Salary

The index of this group increased by 6.4 percent,

compared to that of the preceding year's index. The impact of the 10.0 percent rise in the salary of government employees contributed to rise the index.

(c) Wage Rate


increased at a higher rate of 7.7 percent compared to

an increase of 2.5 percent during the corresponding

period in the preceding year. The growth in the wage rate index is mainly attributable to the rise in the wage rate of agricultural labourer (8.8 percent) industrial labourer (7.0 percent) and construction labourer (4.1 percent).

(d) M-to-M Basis

The overall index in mid-August 2006 increased by

2.9 percent compared to that of the previous month. During the review month, the salary and wage rate increased by 6.0 percent and 1.8 percent respectively.

Salary and Wage Rate Index (2004/05=100)

101.9100.0

102.5

109.3

106.4

110.4

90

95

100

105

110

115

120

Overall Salary Wage Rate

Group

Index


Sub-group Indices of Salary

020406080100120

Overall

Civil Service

Public Corporations

Bank & Financial Institutions

Army &Police Forces

Education

Private Organisations

Sub-groups

Index


Sub-group indices of wage Rate

0

25

50

75

100

125

Overall Agricultural Labourer Industrial Labourer Construction Labourer

Sub-groups

Index


M- O-M change of SWRI

0

1

2

3

4

5

6

7

Overall Salary Index Wage Rate Index

Group

Percent

Mid-July 2006 Mid-August 2006

Table - 1

National Urban Consumer Price Index(1995/96 = 100)

MID-AUGUST 2006 (SHRAWAN 2063)

Weight 2006/07P Percentage Change

Groups & sub-groups % Jul/Aug June/July Jul/Aug May/June June/July Jul/Aug Column 5 Column 5 Column 8 Column 81 2 3 4 5 6 7 8 Over 3 Over 4 Over 5 Over 7

1. OVERALL INDEX 100.00 159.1 166.8 170.7 179.6 180.6 182.4 7.3 2.3 6.9 1.0

1.1. FOOD & BEVERAGES 53.20 154.8 160.3 165.0 170.9 172.9 175.0 6.6 2.9 6.1 1.2

Grains and Cereal Products 18.00 143.0 151.8 158.8 170.0 170.1 170.5 11.0 4.6 7.4 0.2

Rice and Rice Products (14.16) 141.4 150.2 158.9 166.7 166.7 167.1 12.4 5.8 5.2 0.2

Pulses 2.73 130.2 134.0 137.1 172.0 171.2 169.5 5.3 2.3 23.6 -1.0

Vegetables and Fruits 7.89 163.2 158.0 166.7 149.6 160.9 173.8 2.1 5.5 4.3 8.0

Spices 1.85 153.3 147.4 145.9 156.8 159.9 161.2 -4.8 -1.0 10.5 0.8

Meat, Fish and Eggs 5.21 165.8 172.0 173.0 183.0 183.9 182.0 4.3 0.6 5.2 -1.0

Milk and Milk Products 4.05 150.5 154.5 156.2 160.2 163.7 165.9 3.8 1.1 6.2 1.3

Oil and Ghee 3.07 151.8 148.2 147.7 149.6 148.4 149.2 -2.7 -0.3 1.0 0.5

Sugar and Related Products 1.21 140.3 158.4 158.9 167.4 164.7 164.4 13.3 0.3 3.5 -0.2

Beverages 2.28 161.1 167.4 177.4 183.7 183.8 186.0 10.1 6.0 4.8 1.2

Restaurant Meals 6.91 185.5 199.9 201.5 206.6 206.6 206.4 8.6 0.8 2.4 -0.1

1.2. NON-FOOD & SERVICES 46.80 164.1 174.4 177.2 189.5 189.6 191.0 8.0 1.6 7.8 0.7

Cloth, Clothing & Sewing Services 8.92 140.1 143.1 144.1 145.7 145.9 146.6 2.9 0.7 1.7 0.5

Cloths (2.28) 129.1 131.6 133.2 134.0 134.2 134.6 3.2 1.2 1.1 0.3

Clothings (5.75) 139.1 142.6 142.8 144.8 145.0 145.4 2.7 0.1 1.8 0.3

Footwear 2.20 132.8 134.9 136.2 139.5 139.5 140.0 2.6 1.0 2.8 0.4

Housing Goods and Services 14.87 164.7 186.2 186.6 211.7 211.7 213.4 13.3 0.2 14.4 0.8

Fuel, Light and Water (5.92) 201.5 246.0 246.1 300.8 300.8 300.8 22.1 0.0 22.2 0.0

Transport and Communication 4.03 186.2 209.9 215.9 253.6 253.6 254.6 16.0 2.9 17.9 0.4

Medical and Personal Care 8.03 171.2 172.7 175.0 177.7 177.7 179.4 2.2 1.3 2.5 1.0

Education, Reading and Recreation 7.09 188.9 191.2 199.8 200.2 200.3 201.1 5.8 4.5 0.7 0.4

Tobacco and Related Products 1.66 153.5 159.7 162.1 164.6 164.6 172.7 5.6 1.5 6.5 4.9

P = Provisional.

2004/05 2005/06

Urban Consumer Price Index : Kathmandu Valley(1995/96 = 100)



Groups & sub-groups % Jul/Aug June/July Jul/Aug May/June June/July Jul/Aug Column 5 Column 5 Column 8 Column 8

1 2 3 4 5 6 7 8 Over 3 Over 4 Over 5 Over 7

1. OVERALL INDEX 100.00 154.6 160.5 164.0 171.2 172.2 173.7 6.1 2.2 5.9 0.9

1.1. FOOD & BEVERAGES 51.53 150.9 154.2 156.9 161.9 163.8 165.7 4.0 1.8 5.6 1.2



Pulses 2.14 117.1 125.4 127.9 173.3 170.5 166.9 9.2 2.0 30.5 -2.1

Vegetables and Fruits 8.27 141.2 140.1 146.9 129.7 134.5 145.2 4.0 4.9 -1.2 8.0

Spices 1.57 148.2 143.4 139.0 143.2 144.0 144.3 -6.2 -3.1 3.8 0.2



Oil and Ghee 2.62 147.5 143.2 142.5 146.2 144.3 144.9 -3.4 -0.5 1.7 0.4

Sugar and Related Products 1.36 146.9 165.0 165.6 172.9 168.3 170.0 12.7 0.4 2.7 1.0

Beverages 2.39 135.5 144.9 147.2 147.2 147.7 150.3 8.6 1.6 2.1 1.8

Restaurant Meals 7.35 175.0 184.3 186.0 188.6 189.7 189.7 6.3 0.9 2.0 0.0



Cloths (1.83) 136.1 141.8 146.0 146.1 146.6 146.6 7.3 3.0 0.4 0.0

Clothings (6.14) 138.6 142.1 142.2 142.3 142.8 142.8 2.6 0.1 0.4 0.0

Footwear 2.41 134.6 135.3 136.5 136.8 136.8 136.8 1.4 0.9 0.2 0.0



Transport and Communication 4.21 179.8 200.7 213.6 244.6 244.6 244.0 18.8 6.4 14.2 -0.2


Education, Reading and Recreation 8.33 156.8 158.3 173.0 172.7 172.7 172.8 10.3 9.3 -0.1 0.1


DOMESTIC GOODS 81.26 153.1 156.7 160.7 165.7 167.0 168.4 5.0 2.6 4.8 0.8

IMPORTED GOODS 18.74 161.1 176.8 178.3 195.0 194.7 196.5 10.7 0.8 10.2 0.9

TRADABLE GOODS 68.86 151.0 157.0 159.3 167.1 168.4 170.3 5.5 1.5 6.9 1.1

NON-TRADABLE GOODS 31.14 162.7 168.2 174.4 180.1 180.6 181.3 7.2 3.7 4.0 0.4

GOVT.CONTROLLED GOODS 17.03 165.0 186.0 192.4 214.6 216.4 217.2 16.6 3.4 12.9 0.4

NON-CONTROLLED GOODS 82.97 152.5 155.2 158.2 162.2 163.1 164.8 3.7 1.9 4.2 1.0

P=Provisional

2004/05 2005/06

Table - 1.1





1. OVERALL INDEX 100.00 161.6 169.7 173.6 183.6 184.7 186.6 7.4 2.3 7.5 1.0

1.1. FOOD & BEVERAGES 54.98 156.2 162.1 168.0 174.6 176.7 178.9 7.6 3.6 6.5 1.2

Grains and Cereal Products 19.76 140.1 152.9 162.8 174.4 173.4 173.2 16.2 6.5 6.4 -0.1

Rice and Rice Products (15.42) 135.6 149.7 161.9 167.5 166.6 166.1 19.4 8.1 2.6 -0.3

Pulses 3.35 138.2 137.5 141.0 166.7 167.1 166.0 2.0 2.5 17.7 -0.7

Vegetables and Fruits 7.63 176.6 165.5 176.0 158.8 175.1 191.1 -0.3 6.3 8.6 9.1

Spices 2.06 151.4 144.8 145.1 162.6 168.2 169.6 -4.2 0.2 16.9 0.8

Meat, Fish and Eggs 5.02 166.2 172.9 172.5 179.8 180.7 179.5 3.8 -0.2 4.1 -0.7


Oil and Ghee 3.23 154.6 149.8 149.2 151.0 150.3 151.8 -3.5 -0.4 1.7 1.0

Sugar and Related Products 1.09 135.9 153.0 153.2 163.7 161.9 160.1 12.7 0.1 4.5 -1.1

Beverages 2.00 168.1 172.9 183.3 194.6 194.6 196.5 9.0 6.0 7.2 1.0

Restaurant Meals 6.86 184.2 201.8 203.5 209.5 208.9 208.0 10.5 0.8 2.2 -0.4



Cloths (2.63) 132.2 133.1 133.8 136.1 136.3 137.1 1.2 0.5 2.5 0.6

Clothings (5.45) 143.6 145.2 145.4 147.2 147.1 147.6 1.3 0.1 1.5 0.3

Footwear 1.78 132.7 134.4 135.1 139.2 139.2 139.8 1.8 0.5 3.5 0.4







P = Provisional.

Table - 1.2

Urban Consumer Price Index : Terai(1995/96 = 100)

2004/05 2005/06

Table - 1.3

Urban Consumer Price Index : Hills(1995/96 = 100)





1. OVERALL INDEX 100.00 159.7 169.7 173.6 182.7 183.5 185.4 8.7 2.3 6.8 1.0

1.1. FOOD & BEVERAGES 53.04 157.5 165.9 170.2 176.1 177.6 179.5 8.1 2.6 5.5 1.1



Pulses 2.66 130.2 138.4 141.7 184.2 183.2 183.2 8.8 2.4 29.3 0.0

Vegetables and Fruits 7.61 163.4 167.0 174.4 157.6 166.0 174.1 6.7 4.4 -0.2 4.9

Spices 2.01 166.9 161.1 159.0 163.7 163.7 166.8 -4.7 -1.3 4.9 1.9


Milk and Milk Products 3.94 162.7 169.3 169.2 177.3 180.1 182.9 4.0 -0.1 8.1 1.6

Oil and Ghee 3.77 151.5 151.9 152.0 151.3 149.8 149.4 0.3 0.1 -1.7 -0.3

Sugar and Related Products 1.15 141.1 162.2 162.9 168.2 166.6 166.6 15.5 0.4 2.3 0.0

Beverages 2.65 184.3 189.6 211.0 214.2 214.2 216.4 14.5 11.3 2.6 1.0

Restaurant Meals 6.01 205.9 220.4 221.5 228.2 228.4 229.8 7.6 0.5 3.7 0.6



Cloths (2.54) 109.2 110.9 110.8 108.2 108.0 108.2 1.5 -0.1 -2.3 0.2

Clothings (5.51) 127.9 136.4 137.0 142.7 142.9 143.8 7.1 0.4 5.0 0.6

Footwear 2.63 130.1 135.7 138.7 144.9 144.9 145.8 6.6 2.2 5.1 0.6







P = Provisional.

2004/05 2005/06

Weight Revised 2004/05 2005/06 2006/07P

% Weight Jul/Aug Jul/Aug Jul/Aug 2005/06 2006/07

OVERALL (Adjusted) 100.00 100.00 157.8 164.8 172.5 4.5 4.6

FOOD AND BEVERAGES (Adjusted) 53.20 45.53 159.5 167.9 179.5 5.2 7.0

Grains and Cereal Products

Rice and Rice Products 14.16 0.00 141.4 158.9 167.1 12.4 5.2

Wheat and Wheat Flour 1.79 2.62 159.5 174.8 212.4 9.6 21.5

Other Grains and Cereal Products 2.05 3.00 139.8 144.3 158.2 3.2 9.6

Pulses 2.73 3.99 130.2 137.1 169.5 5.3 23.6

Vegetables and Fruits 7.89 0.00 163.2 166.7 173.8 2.1 4.3

Spices 1.85 2.70 153.3 145.9 161.2 -4.8 10.5

Meat, Fish and Eggs 5.21 7.61 165.8 173.0 182.0 4.3 5.2

Milk and Milk Products 4.05 5.92 150.5 156.2 165.9 3.8 6.2

Oil and Ghee 3.07 4.49 151.8 147.7 149.2 -2.7 1.0

Sugar and Related Products 1.21 1.77 140.3 158.9 164.4 13.3 3.5

Beverages 2.28 3.33 161.1 177.4 186.0 10.1 4.8

Restaurant Meals 6.91 10.10 185.5 201.5 206.4 8.6 2.4

NON-FOOD AND SERVICES (Adjusted) 46.80 54.47 156.4 162.3 166.5 3.8 2.6

Cloth, Clothing & Sewing Services 8.92 13.04 140.1 144.1 146.6 2.9 1.7

Footwear 2.20 3.22 132.8 136.2 140.0 2.6 2.8

Housing goods and Services

House Furnishing and Household Goods 3.50 5.12 133.4 139.7 144.6 4.7 3.5

House Rent 4.19 6.12 148.3 154.9 161.8 4.5 4.5

Cleaning Supplies 1.26 1.84 140.2 143.8 158.9 2.6 10.5

Fuel, Light and Water 5.92 0.00 201.5 246.1 300.8 22.1 22.2

Transport 3.61 0.00 193.4 226.4 269.5 17.1 19.0

Communication 0.42 0.61 123.4 126.6 126.6 2.6 0.0

Medical and Personal Care 8.03 11.74 171.2 175.0 179.4 2.2 2.5

Education, Reading and Recreation 7.09 10.36 188.9 199.8 201.1 5.8 0.7

Tobacco and Related Products 1.66 2.43 153.5 162.1 172.7 5.6 6.5

P: Provisional

Total weight excluded 31.58

Total weight included 68.42

Table-1a

Core CPI Inflation**

**Based on the exclusion principle by excluding rice and rice products, vegetables and fruits, fuel, light and water and

transports.

Change %

(1995/96 = 100)


Group & sub-groups

2006/07P

Groups and Sub-groups Weight % Jul/Aug Jun/Jul Jul/Aug May/Jun Jun/Jul Jul/Aug Column 5 Column 5 Column 8 Column 8


1. Overall Index 100.00 122.1 129.9 133.5 138.2 139.9 142.4 9.3 2.8 6.7 1.8

1.1 Agricultural Commodities 49.59 122.1 127.7 134.2 133.9 137.4 140.2 9.9 5.1 4.5 2.0

Foodgrains 16.58 96.6 112.0 115.8 125.7 123.7 126.2 19.9 3.4 9.0 2.0

Cash Crops 6.09 167.4 163.2 166.6 155.5 172.3 186.4 -0.5 2.1 11.9 8.2

Pulses 3.77 122.0 123.5 129.4 155.3 156.1 156.0 6.1 4.8 20.6 -0.1

Fruits and Vegetables 11.18 132.7 125.4 142.3 117.0 123.8 124.4 7.2 13.5 -12.6 0.5

Spices 1.95 103.9 101.6 102.2 108.8 111.4 115.9 -1.6 0.6 13.4 4.0

Livestock Production 10.02 128.7 141.6 144.2 150.1 152.3 151.6 12.0 1.8 5.1 -0.5

1.2 Domestic Manufactured Commodities 20.37 118.9 124.9 123.7 129.4 129.3 132.6 4.0 -1.0 7.2 2.6

Food-Related Products 6.12 109.3 115.3 115.2 118.2 119.0 121.6 5.4 -0.1 5.6 2.2

Beverages and Tobacco 5.68 119.9 124.7 126.4 128.8 128.8 134.5 5.4 1.4 6.4 4.4

Construction Materials 4.50 141.2 152.4 144.7 159.8 160.1 163.3 2.5 -5.1 12.9 2.0

Others 4.07 107.3 109.4 109.4 113.4 111.3 112.5 2.0 0.0 2.8 1.1

1.3 Imported Commodities 30.04 124.3 136.7 138.9 151.2 151.1 152.8 11.7 1.6 10.0 1.1

Petroleum Products and Coal 5.40 165.2 211.9 211.9 263.2 263.2 263.2 28.3 0.0 24.2 0.0

Chemical Fertilizers and Chemical Goods 2.46 131.6 153.1 160.8 169.5 169.5 170.6 22.2 5.0 6.1 0.6

Transport Vehicles and Machinery Goods 6.97 115.1 119.5 123.9 126.1 126.1 126.4 7.6 3.7 2.0 0.2

Electric and Electronic Goods 1.87 96.7 96.6 96.8 96.0 95.3 95.3 0.1 0.2 -1.5 0.0

Drugs and Medicine 2.73 107.3 108.0 111.5 111.3 111.3 111.3 3.9 3.2 -0.2 0.0

Textile-Related Products 3.10 114.6 112.1 111.2 111.0 111.5 111.8 -3.0 -0.8 0.5 0.3

Others 7.51 117.9 123.8 125.2 132.8 132.6 138.5 6.2 1.1 10.6 4.4

P = Provisional

National Wholesale Price Index

Table - 2

(1999/00 = 100)

Percentage Change

Mid-August 2006 (Shrawan 2063)

2004/05 2005/06

Code 2006/07P

No. Names of Commodities Weight % Jul/Aug Jun/Jul Jul/Aug May/Jun Jun/Jul Jul/Aug Column 5 Column 5 Column 8 Column 8


Overall Index 100.00 122.1 127.7 134.2 133.9 137.4 140.2 9.9 5.1 4.5 2.0

1 Rice 22.10 95.3 112.3 117.4 121.2 121.0 120.7 23.2 4.5 2.8 -0.2

2 Maize 1.80 87.0 91.6 97.3 105.6 104.5 110.2 11.8 6.2 13.3 5.5

3 Wheat 9.54 101.5 115.4 115.4 139.7 133.7 142.1 13.7 0.0 23.1 6.3

4 Sugarcane* 2.52 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

5 Oilseeds 2.56 153.3 128.6 134.1 129.7 132.2 133.2 -12.5 4.3 -0.7 0.8

6 Jute 0.30 121.6 162.1 162.2 173.7 173.7 133.7 33.4 0.1 -17.6 -23.0

7 Potato 6.89 174.6 176.1 178.9 164.3 187.1 208.4 2.5 1.6 16.5 11.4

8 Pulses 7.60 122.0 123.5 129.4 155.3 156.1 156.0 6.1 4.8 20.6 -0.1

9 Fruits 11.38 143.7 117.0 146.5 145.5 135.7 135.6 1.9 25.2 -7.4 -0.1

10 Vegetables 11.17 121.5 133.9 138.0 87.9 111.6 113.0 13.6 3.1 -18.1 1.3

11 Spices (Other Crops) 3.93 103.9 101.6 102.2 108.8 111.4 115.9 -1.6 0.6 13.4 4.0

12 Milk 1.96 110.9 122.2 122.2 121.7 133.4 134.8 10.2 0.0 10.3 1.0

13 Meat (Buffalo) 8.05 149.2 168.0 175.5 186.0 188.4 188.4 17.6 4.5 7.4 0.0

14 Mutton 5.20 124.4 132.2 132.2 135.2 133.0 133.0 6.3 0.0 0.6 0.0

15 Pork 1.09 117.8 117.8 117.8 140.8 140.8 140.8 0.0 0.0 19.5 0.0

16 Chicken 1.05 102.9 122.7 119.4 126.7 127.3 104.4 16.0 -2.7 -12.6 -18.0

17 Eggs 1.51 103.6 113.2 111.4 95.6 105.1 106.8 7.5 -1.6 -4.1 1.6

18 Fish 1.34 106.4 114.4 112.9 120.8 120.8 124.2 6.1 -1.3 10.0 2.8

* Because of seasonal nature, it's weight has been divided proportionately to other cash crops in off-season (May/June to Oct./Nov).

P = Provisional

Table - 2.1

Wholesale Price Index of Agricultural Commodities

Percentage Change

(1999/00 = 100)


2004/05 2005/06

Code 2006/07P



Overall Index 100.00 118.9 124.9 123.7 129.4 129.3 132.6 4.0 -1.0 7.2 2.6

19 Sugar 5.34 127.1 147.7 147.2 149.7 150.0 149.3 15.8 -0.3 1.4 -0.5

20 Veg. Ghee 7.67 100.0 96.1 95.6 102.7 102.3 106.4 -4.4 -0.5 11.3 4.0

21 Mustard Oil 0.35 145.2 132.8 129.2 123.9 123.9 124.7 -11.0 -2.7 -3.5 0.6

22 Soybean Oil 3.35 117.4 119.1 118.9 124.8 123.4 127.2 1.3 -0.2 7.0 3.1

23 Biscuit 0.91 98.4 107.8 107.8 103.6 103.6 103.0 9.6 0.0 -4.5 -0.6

24 Processed Milk 4.12 114.9 119.7 119.7 119.7 124.7 129.9 4.2 0.0 8.5 4.2

25 Wheat Flour 1.26 103.4 118.6 118.5 132.2 129.5 135.2 14.6 -0.1 14.1 4.4

26 Noodles 3.18 103.8 103.1 103.1 103.1 103.1 106.7 -0.7 0.0 3.5 3.5

27 Tea 0.83 87.5 90.6 86.5 87.9 87.9 80.9 -1.1 -4.5 -6.5 -8.0

28 Animal Feed 1.03 108.8 106.1 102.2 114.1 114.1 114.1 -6.1 -3.7 11.6 0.0

29 Beaten Rice 3.01 98.2 114.9 117.9 114.8 118.7 120.4 20.1 2.6 2.1 1.4

30 Soft Drinks 4.54 115.6 120.2 120.2 126.8 126.8 126.8 4.0 0.0 5.5 0.0

31 Liquor 7.15 130.2 133.4 135.8 137.8 137.8 139.4 4.3 1.8 2.7 1.2

32 Beer 5.25 122.0 129.3 131.1 135.1 135.1 143.3 7.5 1.4 9.3 6.1

33 Cigarette 11.02 114.1 118.6 120.7 120.7 120.7 130.2 5.8 1.8 7.9 7.9

34 Jute Goods 3.15 99.8 110.0 110.5 122.6 109.8 115.8 10.7 0.5 4.8 5.5

35 Leather (Processed) 0.63 102.8 104.1 104.1 104.1 104.1 104.1 1.3 0.0 0.0 0.0

36 Leather Shoes 1.76 104.3 105.1 105.1 110.2 110.2 110.2 0.8 0.0 4.9 0.0

37 Paper 4.37 107.0 114.7 114.7 117.7 117.7 118.6 7.2 0.0 3.4 0.8

38 Matches 0.47 102.1 102.3 102.3 106.2 100.2 100.2 0.2 0.0 -2.1 0.0

39 Soap 6.34 113.6 107.5 107.5 106.6 106.6 106.6 -5.4 0.0 -0.8 0.0

40 Slippers 0.50 100.0 109.3 109.3 109.3 109.3 109.3 9.3 0.0 0.0 0.0

41 Plastic goods 0.37 126.5 145.4 152.4 152.0 154.8 158.8 20.5 4.8 4.2 2.6

42 Polythene Pipe 0.49 120.9 136.8 136.8 136.8 136.8 184.4 13.2 0.0 34.8 34.8

43 Bricks 1.07 127.4 130.3 137.7 141.9 143.5 144.0 8.1 5.7 4.6 0.3

44 Cement 9.17 127.7 134.6 133.5 151.0 151.4 151.0 4.5 -0.8 13.1 -0.3

45 Iron Rods 2.46 203.1 191.9 188.6 204.9 204.9 213.4 -7.1 -1.7 13.1 4.1

46 GI/HB Wires 2.29 165.6 161.3 162.1 182.9 182.9 182.9 -2.1 0.5 12.8 0.0

47 Corrugated Sheets 5.71 128.5 163.8 136.3 149.2 149.2 149.2 6.1 -16.8 9.5 0.0

48 Electric Wires 0.87 155.3 163.9 160.8 168.7 168.7 204.4 3.5 -1.9 27.1 21.2

49 Drycell Battery 1.34 100.0 102.8 102.8 111.8 111.8 111.8 2.8 0.0 8.8 0.0

P = Provisional

Table - 2.2

Wholesale Price Index of Domestic Manufactured Commodities(1999/00 = 100)

Percentage Change


2004/05 2005/06

Code 2006/07P



Overall Index 100.00 124.3 136.7 138.9 151.2 151.1 152.8 11.7 1.6 10.0 1.1

50 Horlicks & Powder Milk 1.07 118.9 122.6 125.6 122.6 123.3 125.0 5.6 2.4 -0.5 1.4

51 Raw Wool 3.07 122.9 121.6 119.7 114.9 116.4 117.3 -2.6 -1.6 -2.0 0.8

52 Salt 0.38 133.3 133.3 133.3 150.0 150.0 150.0 0.0 0.0 12.5 0.0

53 Petroleum Products 17.62 165.7 213.0 213.0 265.2 265.2 265.2 28.5 0.0 24.5 0.0

54 Chemical Fertilizers 4.65 133.4 146.2 145.5 163.0 163.0 163.0 9.1 -0.5 12.0 0.0

55 Polythene Grannuels 1.88 125.7 140.9 135.3 158.8 165.7 196.1 7.6 -4.0 44.9 18.3

56 Medicine 9.09 107.3 108.0 111.5 111.3 111.3 111.3 3.9 3.2 -0.2 0.0

57 Chemical Goods 3.53 129.4 162.3 180.8 178.0 178.0 180.6 39.7 11.4 -0.1 1.5

58 Other Machinery & Parts 12.81 114.0 120.7 123.7 127.0 127.0 127.5 8.5 2.5 3.1 0.4

59 Transp. Vehi. & Parts 8.77 116.4 117.6 124.7 125.3 125.3 123.9 7.1 6.0 -0.6 -1.1

60 Readymade Garments 1.83 117.8 109.6 109.6 109.6 109.6 109.6 -7.0 0.0 0.0 0.0

61 Agri.Instru. & Parts 1.09 119.6 124.6 124.8 127.9 127.9 133.0 4.3 0.2 6.6 4.0

62 Cotton Fabrics & Textiles 3.62 107.7 107.7 107.7 107.6 107.6 107.6 0.0 0.0 -0.1 0.0

63 Electro. Goods & Equip. 5.33 97.8 97.7 97.9 97.0 96.2 96.2 0.1 0.2 -1.7 0.0

64 Coal 0.35 143.3 160.0 160.2 160.2 160.2 160.2 11.8 0.1 0.0 0.0

65 Radio, T.V. & Parts 0.89 90.1 90.1 90.1 90.1 90.1 90.1 0.0 0.0 0.0 0.0

66 Tire, Tube & Flapes 0.55 111.3 110.6 113.5 112.5 112.5 126.8 2.0 2.6 11.7 12.7

67 Pipe & Pipe Fittings 0.48 130.7 151.9 151.9 151.9 151.9 185.7 16.2 0.0 22.3 22.3

68 Thread 1.80 110.9 107.4 105.3 112.9 112.9 112.9 -5.0 -2.0 7.2 0.0

69 Glass Sheet & Wares 0.54 123.0 126.6 149.6 132.5 132.5 134.6 21.6 18.2 -10.0 1.6

70 Other Stationery 0.45 92.0 92.0 84.0 84.0 84.0 84.0 -8.7 -8.7 0.0 0.0

71 Others 20.20 117.0 122.0 123.7 131.2 130.3 133.8 5.7 1.4 8.2 2.7

P = Provisional

(1999/00 = 100)

Percentage Change


2004/05 2005/06

Table - 2.3

Wholesale Price Index of Imported Commodities

Weight 2006/07P

% Mid-Aug Mid-Jul Mid-Aug Mid-Jun Mid-Jul Mid-Aug

1 2 3 4 5 6 7 8

Overall Index 100.0 100.0 100.0 101.9 105.7 106.2 109.3 1.9 1.9 7.3 2.9

1 Salary Index 27.0 100.0 100.0 100.0 100.4 100.4 106.4 0.0 0.0 6.4 6.0

Officers 9.8 100.0 100.0 100.1 100.3 100.3 105.7 0.1 0.1 5.6 5.4

Non Officers 17.2 100.0 100.0 100.0 100.4 100.4 106.8 0.0 0.0 6.8 6.4

1.1 Civil Service 2.8 100.0 100.0 100.0 100.0 100.0 110.0 0.0 0.0 10.0 10.0

Officers 0.3 100.0 100.0 100.0 100.0 100.0 110.0 0.0 0.0 10.0 10.0

Non Officers 2.5 100.0 100.0 100.0 100.0 100.0 110.0 0.0 0.0 10.0 10.0

1.2 Public Corporations 1.1 100.0 100.0 100.0 104.4 104.4 107.0 0.0 0.0 7.0 2.5

Officers 0.2 100.0 100.0 100.0 106.4 106.4 109.1 0.0 0.0 9.1 2.5

Non Officers 0.9 100.0 100.0 100.0 104.0 104.0 106.6 0.0 0.0 6.6 2.5

1.3 Bank & Financial Institutions 0.6 100.0 100.0 101.5 110.0 110.0 110.9 1.5 1.5 9.3 0.8

Officers 0.1 100.0 100.0 102.5 112.6 112.6 114.1 2.5 2.5 11.3 1.3

Non Officers 0.4 100.0 100.0 101.3 109.4 109.4 110.1 1.3 1.3 8.7 0.6

1.4 Army &Police Forces 4.0 100.0 100.0 100.0 100.0 100.0 111.4 0.0 0.0 11.4 11.4

Officers 0.2 100.0 100.0 100.0 100.0 100.0 109.9 0.0 0.0 9.9 9.9

Non Officers 3.8 100.0 100.0 100.0 100.0 100.0 111.5 0.0 0.0 11.5 11.5

1.5 Education 10.6 100.0 100.0 100.0 100.0 100.0 107.0 0.0 0.0 7.0 7.0

Officers 6.8 100.0 100.0 100.0 100.0 100.0 106.5 0.0 0.0 6.5 6.5

Non Officers 3.8 100.0 100.0 100.0 100.0 100.0 108.0 0.0 0.0 8.0 8.0

1.6 Private Organisations 7.9 100.0 100.0 100.0 100.0 100.0 101.3 0.0 0.0 1.3 1.3

Officers 2.2 100.0 100.0 100.0 100.0 100.0 101.5 0.0 0.0 1.5 1.5

Non Officers 5.7 100.0 100.0 100.0 100.0 100.0 101.3 0.0 0.0 1.3 1.3

2 Wage Rate Index 73.0 100.0 100.0 102.5 107.7 108.4 110.4 2.5 2.5 7.7 1.8

2.1 Agricultural Labourer 39.5 100.0 100.0 104.5 109.0 110.0 113.7 4.5 4.5 8.8 3.4

Male 20.5 100.0 100.0 104.2 108.2 109.1 113.2 4.2 4.2 8.6 3.8

Female 19.0 100.0 100.0 104.8 109.8 110.9 114.2 4.8 4.8 9.0 3.0

2.2 Industrial Labourer 25.3 100.0 100.0 100.0 107.0 107.0 107.0 0.0 0.0 7.0 0.0

High Skilled 6.3 100.0 100.0 100.0 104.3 104.3 104.3 0.0 0.0 4.3 0.0

Skilled 6.3 100.0 100.0 100.0 106.4 106.4 106.4 0.0 0.0 6.4 0.0

Semi Skilled 6.3 100.0 100.0 100.0 108.2 108.2 108.2 0.0 0.0 8.2 0.0

Unskilled 6.3 100.0 100.0 100.1 109.0 109.0 109.0 0.1 0.1 8.9 0.0

2.3 Construction Labourer 8.3 100.0 100.0 100.7 103.6 104.8 104.8 0.7 0.7 4.1 0.0

Mason 2.8 100.0 100.0 101.8 104.4 105.1 105.1 1.8 1.8 3.2 0.0

Skilled 1.4 100.0 100.0 101.5 105.5 106.0 106.0 1.5 1.5 4.4 0.0

Unskilled 1.4 100.0 100.0 102.1 103.3 104.1 104.1 2.1 2.1 2.0 0.0

Carpenter 2.8 100.0 100.0 100.3 102.9 103.1 103.1 0.3 0.3 2.8 0.0

Skilled 1.4 100.0 100.0 100.1 104.4 104.9 104.9 0.1 0.1 4.8 0.0

Unskilled 1.4 100.0 100.0 100.5 101.3 101.3 101.3 0.5 0.5 0.8 0.0

worker 2.8 100.0 100.0 100.0 103.6 106.2 106.2 0.0 0.0 6.2 0.0

Male 1.4 100.0 100.0 100.0 103.3 106.4 106.4 0.0 0.0 6.4 0.0

Female 1.4 100.0 100.0 100.0 103.8 106.0 106.0 0.0 0.0 6.0 0.0

P : Provisional

5 over 3

Percentage Change2005/062004/05

Table - 3

National Salary and Wage Rate Index

Groups/Sub-groupsS.No.

(2004/05=100)

Mid- August 2006 (Shrawan 2063)

8 over 55 over 4 8 over 7

Mid-Aug 05 Mid-Jul 06 Mid-Aug 06 Mid-Aug 05 Mid-Jul 06 Mid-Aug 06

1 2 3 4 5 6 3 Over 2 6 Over 5 3 Over 6

Foodgrains

1 Paddy Coarse Qtl. 1145.25 1109.00 1104.00 954.00 1026.67 1024.67 -0.5 -0.2 7.7

2 Paddy Fine (Basmati ) Qtl. 2050.00 2137.50 2137.50 1653.34 2045.34 2050.67 0.0 0.3 4.2

3 Maize Qtl. 1012.50 1011.25 1010.00 886.00 908.67 870.67 -0.1 -4.2 16.0

4 Rice Fine ( Basmati ) Kg. 37.42 42.00 42.00 37.73 40.40 39.33 0.0 -2.6 6.8

5 Rice ( Mansuli ) Kg. 23.75 24.00 24.09 22.53 21.07 19.93 0.4 -5.4 20.8

6 Rice Coarse Kg. 19.67 18.83 18.92 16.87 16.87 16.20 0.4 -4.0 16.8

7 Beaten Rice Kg. 24.17 23.50 23.67 21.47 21.07 20.80 0.7 -1.3 13.8

8 Wheat Flour ( Atta ) Kg. 16.75 20.75 20.92 14.87 18.07 18.20 0.8 0.7 14.9

9 Wheat Flour ( Maida ) Kg. 19.25 23.25 23.75 17.20 20.00 19.87 2.2 -0.7 19.6

Pulses

10 Black Gram Kg. 44.83 75.42 75.42 48.80 75.23 75.34 0.0 0.1 0.1

11 Arahar Kg. 51.67 56.75 56.92 50.27 51.87 51.33 0.3 -1.0 10.9

12 Mung Kg. 53.08 85.33 88.67 53.73 78.40 78.67 3.9 0.3 12.7

13 Musuro Kg. 43.83 48.58 48.58 41.47 42.14 40.67 0.0 -3.5 19.5

14 Moog (Broken ) Kg. 53.25 85.75 85.75 47.73 65.33 63.80 0.0 -2.3 34.4

15 Chick Pea Kg. 35.63 49.75 50.42 33.87 44.28 45.22 1.3 2.1 11.5

Vegetables Kg.

16 Red Potato Kg. 14.50 15.33 17.50 11.60 13.20 13.20 14.1 0.0 32.6

17 White Potato Kg. 14.17 14.25 16.00 11.27 12.67 12.94 12.3 2.1 23.7

18 Dry Onion Kg. 15.58 14.42 15.42 11.60 11.33 11.87 6.9 4.7 29.9

19 Tomato Kg. 32.67 30.50 23.50 33.73 35.73 35.60 -23.0 -0.4 -34.0

20 Cabbage Kg. 20.75 16.17 17.67 27.87 24.27 29.73 9.3 22.5 -40.6

21 Cauli Flower Kg. 41.92 38.00 49.83 57.07 60.27 68.80 31.1 14.2 -27.6

Fruits

22 Banana ( Harichhal ) Doz. 20.67 21.25 21.25 20.80 23.47 21.27 0.0 -9.4 -0.1

23 Apple (Chocolate ) Kg. 75.00 80.83 79.58 82.00 83.33 80.80 -1.5 -3.0 -1.5

24 Orange Kg. 0.00 60.00 60.00 64.00 0.00 0.00 0.0 0.0 0.0

25 Sweet Orange Kg. 39.00 55.00 45.84 33.60 48.00 41.34 -16.7 -13.9 10.9

Spices

26 Salt Kg. 9.00 10.00 10.00 12.50 13.80 13.40 0.0 -2.9 -25.4

27 Turmeric 250g 17.75 22.25 22.25 20.93 22.00 22.93 0.0 4.2 -3.0

28 Garlic 250g 11.67 19.33 19.83 7.80 14.27 18.53 2.6 29.9 7.0

29 Ginger 250g 17.08 10.50 9.25 20.00 10.27 10.27 -11.9 0.0 -9.9

30 Cuminseed Kg. 165.00 161.67 161.67 160.00 168.00 170.67 0.0 1.6 -5.3

31 Dry Chilli 250g 16.42 30.17 30.17 13.40 25.20 25.00 0.0 -0.8 20.7

32 Coriander 250g 12.75 17.84 17.84 11.40 14.93 15.07 0.0 0.9 18.4

Milk & Milk Products

33 Dairy Milk Lit. 23.00 25.00 25.00 25.20 25.20 25.60 0.0 1.6 -2.3

34 Lactogen Refill Pack No.2 500g 227.50 227.50 227.50 213.20 212.00 213.60 0.0 0.8 6.5

35 Horlicks 500g 164.25 165.50 166.75 172.00 175.60 176.80 0.8 0.7 -5.7

Meat & Fish

36 Mutton Kg. 215.00 228.33 228.33 192.00 214.67 206.67 0.0 -3.7 10.5

37 Chicken Kg. 122.08 137.50 136.68 134.00 120.67 107.33 -0.6 -11.1 27.3

38 Fish (Rahu) Kg. 95.83 109.58 107.50 84.00 102.00 98.67 -1.9 -3.3 9.0

39 Egg Piece 4.52 4.13 4.13 2.98 2.26 2.28 0.0 1.0 80.7

Oil & Ghee

40 Mustard Oil Lit. 95.42 95.50 95.58 84.53 84.93 87.33 0.1 2.8 9.4

41 Vegetable Ghee Lit. 49.75 56.84 58.67 68.67 73.60 74.13 3.2 0.7 -20.9

42 Soyabean Oil Lit. 61.00 71.92 71.25 75.47 74.80 74.67 -0.9 -0.2 -4.6

43 Sunflower Oil Lit. 90.50 92.25 92.58 104.53 110.22 109.69 0.4 -0.5 -15.6

Soap

44 Lundry Soap Piece 9.00 9.00 9.00 8.60 8.60 8.60 0.0 0.0 4.7

45 Bath Soap (Lux) Piece 17.00 17.00 17.00 20.80 20.80 20.80 0.0 0.0 -18.3

Chemical Fertilizers

46 Urea 50Kg. 767.75 920.00 977.92 390.40 396.80 409.87 6.3 3.3 138.6

47 D.A.P. 50Kg. 1223.75 1263.33 1298.75 750.00 777.20 766.00 2.8 -1.4 69.5

48 Potas 50Kg. 680.00 685.00 683.33 353.60 349.33 348.80 -0.2 -0.2 95.9

Mid-August 2006

Nepal* India**

S.NO. UnitDiscreptionPercetage Change

Table 4

Average Retail Prices of Selected Commodites in Border Market

(Prices in NRs)

Page 11 of 14

Mid-Aug 05 Mid-Jul 06 Mid-Aug 06 Mid-Aug 05 Mid-Jul 06 Mid-Aug 06

1 2 3 4 5 6 3 Over 2 6 Over 5 3 Over 6

Nepal* India**

S.NO. UnitDiscreptionPercetage Change

Construction Materials

49 Cement (Indian) 50Kg. 343.99 406.67 408.89 261.60 313.60 311.60 0.5 -0.6 31.2

50 Iron Rods (10 mm.) Kg. 41.64 46.14 46.49 38.70 39.08 38.68 0.8 -1.0 20.2

51 Corrugated Sheet (26 Gage) Bundle 4902.92 4785.00 4880.83 4592.00 5394.00 5456.00 2.0 1.1 -10.5

52 Bricks (Big Size) Thou. 3393.75 3675.00 3729.17 3235.00 3253.33 3406.67 1.5 4.7 9.5

53 Timber 3''x4''x12' (Sal Tree) Cft. 1006.25 1110.42 1118.75 1110.67 1271.92 1233.25 0.8 -3.0 -9.3

Wages

54 Mason Day 207.29 224.17 224.17 228.00 230.67 242.00 0.0 4.9 -7.4

55 Carpenter Day 196.88 217.92 217.92 224.00 226.27 238.00 0.0 5.2 -8.4

56 Labourer (Male) Day 99.58 116.67 122.08 116.00 132.00 142.00 4.6 7.6 -14.0

57 Labourer (Female) Day 97.08 109.58 115.83 110.00 126.00 136.00 5.7 7.9 -14.8

Petroleium Products

58 Kerosene (Open) Lit. 34.13 47.71 47.63 35.73 44.80 44.91 -0.2 0.2 6.1

59 Kerosene (Quota) Lit. 0.00 0.00 0.00 17.40 17.80 17.90 0.0 0.6 0.0

60 Diesel Lit. 41.00 52.39 52.39 50.39 56.86 56.90 0.0 0.1 -7.9

61 Petrol Lit. 62.00 67.24 67.24 69.98 81.12 81.02 0.0 -0.1 -17.0

62 L.P. Gas Cylinder 900.00 900.00 900.00 483.38 484.58 484.58 0.0 0.0 85.7

Other

63 Sugar Kg. 35.00 37.47 37.13 31.60 33.73 33.60 -0.9 -0.4 10.5

64 Tea (Red Label) 250g 61.33 85.50 85.50 73.60 74.20 73.93 0.0 -0.4 15.6

Service Sector

65 Electricity Tariff 30 Ampiar 664.00 664.00 664.00 155.20 155.20 155.20 0.0 0.0 327.8

66 Telephone Tariff Minimum 259.90 259.90 248.60 313.20 323.20 310.64 -4.3 -3.9 -20.0

67 Drinking Water Tariff Minimum 50.00 50.00 50.00 80.00 80.00 80.00 0.0 0.0 -37.5

68 Postal Stamp (Registry) Minimum 10.00 10.00 10.00 35.20 35.20 35.20 0.0 0.0 -71.6

69 Doctor Fee (Specialist) Per Patient 206.25 210.42 210.42 198.00 218.00 208.00 0.0 -4.6 1.2

70 Chest X-Ray Per X-Ray 120.00 126.25 126.25 148.00 152.00 150.67 0.0 -0.9 -16.2

** Average Prices of Purnia, Mujjaffurpur, Gorakhpur and Baharaich.

* Average Prices of Biratnagar, Birganj,Sidhdharthanagar and Nepalganj.

Page 12 of 14

July.23 July.31 August.07 August.15

S. No. Name Unit Srawan 07 Srawan 15 Srawan 22 Srawan 30 Column 3 Column 4

1 2 3 4 Over 2 Over 3

Foodgrains

1 Rice Fine(Pokhreli) Kg. 38.67 38.67 38.67 38.67 0.0 0.0

2 Rice Mansuli(Terai ) Kg. 25.00 25.00 25.00 25.00 0.0 0.0

3 Rice Mansuli (Trishuli ) Kg. 29.33 29.33 29.33 29.33 0.0 0.0

4 Beaten Rice (Tikan) Kg. 50.00 50.00 50.00 50.00 0.0 0.0

5 Wheat Flour (Atta) Kg. 24.67 24.00 24.00 24.33 0.0 1.4

6 Bread Pound 16.00 16.00 16.00 16.00 0.0 0.0

Pulses

7 Black Gram Kg. 88.33 86.67 86.67 86.67 0.0 0.0

8 Mung Kg. 86.67 83.33 81.67 80.00 -2.0 -2.0

9 Musuro Kg. 56.67 55.00 55.00 55.00 0.0 0.0

10 Chick Pea Kg. 65.00 63.33 63.33 63.33 0.0 0.0

Vegetables

11 Cabbage Kg. 12.00 12.00 11.33 12.00 -5.6 5.9

12 Tomato Kg. 16.00 13.00 13.00 12.00 0.0 -7.7

13 Beans Green Kg. 33.33 31.67 28.33 30.00 -10.5 5.9

14 Red Potato Kg. 18.00 18.00 18.00 19.33 0.0 7.4

15 White Potato Kg. 13.67 15.00 15.00 15.67 0.0 4.5

16 Dried Onion Kg. 18.00 18.00 18.00 18.67 0.0 3.7

Fruits

17 Apple Kg. 70.00 76.67 73.33 73.33 -4.4 0.0

18 Banana (Harichhal) Doz. 25.00 30.00 30.00 30.00 0.0 0.0

Spices

19 Salt Kg. 10.00 10.00 10.00 10.00 0.0 0.0

20 Cuminseed 200g. 34.67 34.67 34.67 35.33 0.0 1.9

21 Turmeric 200g. 18.00 18.00 18.00 18.00 0.0 0.0

22 Garlic 200g. 12.33 13.00 12.00 12.00 -7.7 0.0

Milk & Milk Products

23 Dairy Milk 500 ml. 13.00 13.00 13.00 13.00 0.0 0.0

24 Lactogen 500g 243.33 243.33 243.33 243.33 0.0 0.0

Oil and Ghee

25 Mustard Oil Lit. 100.00 100.00 100.00 100.00 0.0 0.0

26 Soybean Oil Lit. 68.00 68.67 68.67 69.33 0.0 1.0

27 Vegetable Ghee Lit. 58.00 60.00 60.00 60.67 0.0 1.1

Meat & Fish

28 Mutton Kg. 300.00 300.00 300.00 300.00 0.0 0.0

29 Fish( Rahu ) Kg. 120.00 120.00 120.00 120.00 0.0 0.0

Soap

30 Bath Soap 100g. 17.00 17.00 17.00 17.00 0.0 0.0

31 Lundry Soap 200g. 9.00 9.00 9.00 9.00 0.0 0.0


32 Cement (Nepali -Everest ) 50Kg. 454.00 454.00 454.00 454.00 0.0 0.0

33 Cement ( Indian - Buland ) 50Kg. 475.00 485.00 485.00 485.00 0.0 0.0

34 Iron Rods ( Himal ) Kg. 50.23 51.36 51.36 51.36 0.0 0.0

35 Corrugated Sheets ( Hulas ) Bundle 5310.00 5310.00 5310.00 5310.00 0.0 0.0

36 Bricks (Big Size) Thou. 3500.00 3500.00 3500.00 3500.00 0.0 0.0

37 Timber 3"x4"x12'(Sal Tree ) C.F. 1250.00 1250.00 1250.00 1250.00 0.0 0.0

Others

38 Sugar Kg. 38.00 40.00 40.00 40.00 0.0 0.0

39 Tea 200g. 40.00 40.00 40.00 40.00 0.0 0.0

40 Kerosene ( Open market ) Lit. 48.00 48.00 48.00 48.00 0.0 0.0

Percentage Change

Table -5.1

Mid - August 2006

Weekly Average Retail Prices of Some Essential Commodities

Kathmandu

(Prices in Rupees)

July.23 July.31 August.07 August.15

S.No. Name Unit Srawan 07 Srawan 15 Srawan 22 Srawan 30 Column 3 Column 4

1 2 3 4 Over 2 Over 3

Foodgrains

1 Rice Fine (Basmati) Kg. 40.92 40.92 40.92 40.92 0.0 0.0

2 Rice Mansuli Kg. 23.83 23.83 23.83 23.75 0.0 -0.3

3 Beaten Rice Kg. 23.00 23.00 23.42 23.33 1.8 -0.4

4 Wheat Flour (Atta) Kg. 20.59 20.59 20.59 20.59 0.0 0.0

5 Local Bread Pound 15.17 16.67 16.75 16.83 0.5 0.5

Pulses

6 Black Gram Kg. 74.75 75.00 75.00 75.00 0.0 0.0

7 Arahar Kg. 55.33 55.33 55.33 54.08 0.0 -2.3

8 Musuro Kg. 48.33 48.17 48.25 47.83 0.2 -0.9

9 Chick Pea Kg. 55.58 55.58 55.58 55.50 0.0 -0.1

Vegetables

10 Cabbage Kg. 17.25 18.17 17.67 16.67 -2.8 -5.7

11 Local Tomato Kg. 21.00 19.00 18.50 22.00 -2.6 18.9

12 Green Beans Kg. 37.33 40.00 40.00 37.33 0.0 -6.7

13 Red Potato Kg. 17.67 18.42 18.75 18.75 1.8 0.0

14 White Potato Kg. 16.09 16.50 16.50 17.33 0.0 5.0

15 Dried Onion Kg. 15.92 15.92 15.92 16.42 0.0 3.1

Fruits

16 Apple (Delicious) Kg. 82.08 84.58 82.08 82.08 -3.0 0.0

17 Banana (Harichhal) Doz. 20.83 22.17 22.50 22.83 1.5 1.5

Spices

18 Salt Kg. 10.00 10.00 10.00 10.00 0.0 0.0

19 Turmeric 250g. 22.25 22.25 22.25 22.42 0.0 0.8

20 Cuminseed 250g. 41.42 41.25 41.25 42.08 0.0 2.0

21 Dry Chilli 250g. 29.67 29.67 29.67 29.67 0.0 0.0

Milk and Milk Products

22 Dairy Milk (500 ml.) Pound 12.75 12.75 12.75 12.75 0.0 0.0

23 Lactogen Refill Pack NO.2 500g 230.00 230.00 230.00 232.50 0.0 1.1

Oil and Ghee

24 Mustard Oil Lit. 94.00 94.00 94.11 94.11 0.1 0.0

25 Soybean Oil Lit. 70.00 70.00 70.00 70.00 0.0 0.0

26 Vegetable Ghee Lit. 58.67 59.67 59.67 60.17 0.0 0.8

Meat and Fish

27 Mutton Kg. 228.33 228.33 228.33 228.33 0.0 0.0

28 Fish( Rahu ) Kg. 110.42 107.50 107.50 107.08 0.0 -0.4

Soap

29 Bath Soap 100g. 17.00 17.00 17.00 17.00 0.0 0.0

30 Lundry Soap 200g. 9.00 9.00 9.00 9.00 0.0 0.0


31 Cement ( Nepali ) 50Kg. 382.92 381.67 381.67 381.67 0.0 0.0

32 Cement ( Indian ) 50Kg. 408.89 408.89 400.00 418.33 -2.2 4.6

33 Iron Rods Kg. 46.77 47.37 47.37 47.81 0.0 0.9

34 Corrugated Sheets Bundle 4870.83 4895.83 4905.83 4905.83 0.2 0.0

35 Bricks (Big Size) Thou. 3737.50 3737.50 3741.67 3741.67 0.1 0.0

36 Timber 3"x4"x12' ( Sal Tree) C.F.. 1122.92 1122.92 1122.92 1122.92 0.0 0.0

Others

37 Sugar Kg. 37.17 36.83 36.83 36.75 0.0 -0.2

38 Tea Dust (Nepali) 100g. 20.25 20.50 20.50 20.50 0.0 0.0

39 Kerosene( open market ) Lit. 47.63 47.63 47.58 47.54 -0.1 -0.1

*Average Prices of Biratnagar, Birgunj, Sidhdharthanagar and Nepalgunj.

Percentage Change

Table - 5.2

Mid - August 2006

Weekly Average Retail Prices of Some Essential Commodities

Terai*

(Prices in Rupees)

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Inflation Analysis and Price Situation--2006-08_Vol I No1(Mid_August 2006)

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