Inflation Nepal 2021
Average inflation: 4.1%
Current Inflation
Inflation is high at 4.1%, well above the ECB target.
Peak and Trough
The highest inflation was in December at 7.1%. The lowest inflation was in February at 2.7%.
- Highest month
- December: 7.1%
- Lowest month
- February: 2.7%
- Difference
- 4.4 percentage points
- Months with data
- 12 of 12
Category Insights
The highest price increase was in Food with an average of 4.2%. The lowest price increase was in Energy with an average of 2.5%.
- Highest increase
- Food: 4.2%
- Lowest increase
- Energy: 2.5%
Historical Context
Current inflation is around the 5-year average of 4.5%.
- 5-year average
- 4.5%
- 10-year average
- 6.6%
- All-time high (2009)
- 11.2%
- All-time low (2006)
- 0%
Trend
Inflation shows a downward trend. Compared to 2020, inflation has fallen by +1.0 percentage point.
- Change vs. previous year
- -1.0 percentage points
- Largest monthly swing
- February: -4.2 percentage points
ECB Target
Inflation is 2.1% above the ECB target of 2.0%. This means purchasing power is declining faster than intended.
Purchasing Power
At this inflation rate, purchasing power noticeably decreases. Without a salary increase, you can buy less with the same money.
What you could buy for €100 this year will cost approximately €104.10 next year at this inflation rate.
Multi-year trend
Monthly figures 2021
Month overview
| Month | Inflation | Difference vs. 2020 |
|---|---|---|
| January | 3.6% | -3.2 |
| February | 2.7% | -4.2 |
| March | 3.0% | -3.7 |
| April | 3.1% | -3.6 |
| May | 3.6% | -2.2 |
| June | 4.2% | -0.3 |
| July | 4.2% | -0.6 |
| August | 4.4% | +0.9 |
| September | 3.5% | -1.0 |
| October | 4.2% | +0.4 |
| November | 6.0% | +2.0 |
| December | 7.1% | +4.2 |
| Average | 4.1% |
Data source
Data from WorldBank. Last updated: 06/01/2026.