Nepal's annual consumer price inflation reached 5.04% in May 2026, its highest level in 16 months, according to available economic data. Food and beverage inflation rose to 4.63% in mid-May, compared to just 1.52% in the same period of the previous fiscal year.
Within the food basket, fruit prices surged 18.60% year-on-year, ghee and oil rose 13.99%, vegetables increased 5.40%, and meat and fish were up 4.16%. Nepal Rastra Bank has forecast that inflation will remain within 6% for the fiscal year.
Consumer rights activists said the inflation rate as experienced by ordinary households may be closer to 8% or even 10%, suggesting official figures may not fully capture the cost-of-living pressures faced at the household level.