Nepal's annual inflation rate reached 5.04% in May 2026, the highest level recorded since January 2025, according to available economic data. The increase from 4.47% in April 2026 was attributed to rising transportation and energy costs across the economy.
The uptick is notable given that inflation had been relatively contained earlier in the fiscal year, standing at 2.65% in December 2025 and 2.42% in January 2026. The rise in inflation is expected to be a key variable in the NRB's deliberations as it finalizes the monetary policy for fiscal year 2026/27.