Nepal's inflation highest in South Asia

Nepal has the highest inflation in South Asia, according to a regional report. According to the Asian Development Outlook (ADO), published by the Asian Development Bank (ADB) on Monday, Nepal is projected to have the highest inflation rate in South Asia. The inflation rate has been the highest in Nepal among the South Asian countries for the last couple of years. Nepal's inflation started to stand above all the South Asian countries since Fiscal Year 2012/13, data shows. In 2011/12, Nepal had the third lowest inflation in the region after Afghanistan and Sri Lanka. However, inflation started going overboard since the last four fiscal years, and continuing the trend for the current fiscal year -- that started from July 16 -- too. The ADB has also projected the inflation rate to be at 8.2 percent -- that will also be highest in the region -- in 2016/17. Likewise, the ADB has projected 10.5 percent inflation for the last fiscal year 2015/16 -- that ended 3 days ago on July 15 -- the highest among the eight South Asian countries and double the regional average of 5.2 percent. Though the central bank and the government had targeted to keep the inflation under 8.5 percent in the last fiscal year, the inflation has been looking to go above double-digit, according to the central bank's macroeconomic report of the first 11 months of 2015/16. The consumer price inflation -- according to the Nepal Rastra Bank -- increased to 11.1 percent in mid-June, 2016 from 7.4 percent in the same period last year. Though supply side constraints and blockades have been blamed for high inflation, lack of effective and efficient market monitoring, irregular power supply and shortage of raw materials coupled with the transport syndicate are largely responsible for the ever increasing inflation. The increasing inflation has been pushing the vulnerable middle class and fixed income group below the poverty line, making Nepal the poorest country in South Asia by 2021, according to senior economist Madan Kumar Dahal. Source: republica