KATHMANDU: Nepal Rastra Bank (NRB) has updated its Consumer Price Index (CPI) by shifting the base year to fiscal year 2080/81 BS and adding 136 new items to its basket of goods. This move is aimed at better reflecting the current consumption patterns in the country and improving the accuracy of inflation tracking.
In a press conference held on Wednesday, NRB revealed that the CPI now includes 525 items, up from 480 previously. Dr. Gunakar Bhatta, Executive Director of NRB’s Research Department, explained the changes, stating that 106 outdated items have been removed, and new, more relevant items have been added to ensure a more accurate reflection of market prices and trends.
“With the new index, the total number of items has increased to 525, and we’ve adjusted some product categories to better match the current market environment,” said Dr. Bhatta. He also emphasized that the revised CPI will provide more precise inflation estimates, making it a valuable tool for researchers and users in various sectors.
The revision follows a decade-old survey conducted in collaboration with the National Statistics Office and Tribhuvan University’s Department of Statistics. NRB Governor Maha Prasad Adhikari expressed optimism that the new CPI will help address public concerns about discrepancies between official inflation figures and actual market prices. He explained that certain market events, such as transportation disruptions, may not always be immediately reflected in inflation statistics, leading to discrepancies between reported data and the public’s experience.
The update is expected to enhance the transparency and accuracy of inflation tracking in Nepal, offering a clearer picture of price fluctuations and helping to improve economic planning and policymaking.