Highlights of Inflation Expectations Survey for the First Quarter of FY 2022/23

Nepal Rastra Bank (NRB) has released the results of the Inflation Expectations Survey (IES) for the first quarter of FY 2022/23.

Highlights:

86.6 percent of respondents expected the price level to increase in the next three months. Likewise, 95.7 percent of respondents expected the price level to increase over the next year. The share of respondents expecting price increases in the next three months has decreased from mid-July, 2022, while the share of respondents expecting price increases over the next year has slightly increased.

The share of respondents expecting price increases in food and sub-group; non-food and services and its’ subgroup; and real estate (housing) during the next three months has decreased compared to that of mid-July, 2022.

The share of respondents expecting price increases in one year ahead across the entire food products, except for cereal grains, pulses, sugar and spices, and non-food and services groups has decreased compared to mid-July, 2022.

Median inflation expectation for three months ahead and one year ahead has decreased compared to mid-July, 2022. Median inflation expectations for three months and one year ahead stand at 10.0 percent and 12.0 percent respectively. This shows that individuals expect inflation to decrease in the near term and slightly increase in the medium term. Nepal Rastra Bank's tight monetary policy stance has played a crucial role in anchoring inflation expectations in the near and medium term.

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