Nepal's inflation hits 5.04% in May 2026, highest since January 2025, but remains below NRB target

Nepal's annual inflation rate reached 5.04% in May 2026, the highest recorded since January 2025, rising from 4.47% in April 2026. Food and beverages, which carry a 44% weight in the Consumer Price Index, and housing and utilities at 20%, are the largest contributors to the index.

Despite the increase, the rate remains below Nepal Rastra Bank's stated target band of 5.5–6.5%. The NRB's broader macroeconomic report for the ten months ending mid-May 2026 also recorded broad money supply (M2) growth of 9.2% during the same period.