Inflation Nepal 2020

Average inflation: 5.1%

Current Inflation

Inflation is very high at 5.1%, far above the ECB target.

Peak and Trough

The highest inflation was in February at 6.9%. The lowest inflation was in December at 2.9%.

Highest month
February: 6.9%
Lowest month
December: 2.9%
Difference
4.0 percentage points
Months with data
12 of 12

Category Insights

The highest price increase was in Food with an average of 7.6%. The lowest price increase was in Energy with an average of 2.8%.

Highest increase
Food: 7.6%
Lowest increase
Energy: 2.8%

Historical Context

Current inflation is around the 5-year average of 5.5%.

5-year average
5.5%
10-year average
7.1%
All-time high (2009)
11.2%
All-time low (2006)
0%

Trend

Inflation has remained relatively stable. Compared to 2019, the difference is minimal (-0.5 percentage point).

Change vs. previous year
-0.5 percentage points
Largest monthly swing
December: -3.6 percentage points

ECB Target

Inflation is 3.1% above the ECB target of 2.0%. This means purchasing power is declining faster than intended.

Purchasing Power

At this high inflation rate, purchasing power rapidly decreases. This has a major impact on households, especially without adequate salary increases.

What you could buy for €100 this year will cost approximately €105.10 next year at this inflation rate.

Multi-year trend

Monthly figures 2020

Month overview

Month Inflation Difference vs. 2019
January 6.8% +2.2
February 6.9% +2.5
March 6.7% +2.5
April 6.7% +2.3
May 5.8% +0.5
June 4.5% -1.7
July 4.8% -1.2
August 3.5% -3.5
September 4.5% -1.7
October 3.8% -2.4
November 4.0% -1.8
December 2.9% -3.6
Average 5.1%

Data source

Data from WorldBank. Last updated: 06/01/2026.

See also