Nepal Rastra Bank Introduces New Base Year for Consumer Price Index
He further mentioned that previously only 50 districts were covered, but now all districts are included in the data collection.
Kathmandu: Nepal Rastra Bank (NRB) has announced the launch of the Consumer Price Index (CPI) with a revised base year. The central bank made this change public during a press conference on Wednesday.
Previously, the CPI was calculated using the base year of 2014/15. However, from this year onwards, the bank will use 2023/24 as the new base year. The NRB explained that changes in consumption patterns and the expansion of price collection centres across all 77 districts prompted this update.
Governor Maha Prasad Adhikari stated that certain goods are no longer in use, while new items have emerged, making it necessary to revise the base year. He added that change is an ongoing process, and while the current system may not be perfect, adjustments will be made as needed.
Adhikari also noted that the CPI now includes 525 goods, up from 496, reflecting more dynamic market trends. The bank is trying to capture real-time changes in consumer habits and market prices. He further mentioned that previously only 50 districts were covered, but now all districts are included in the data collection.
The new CPI is based on over 102,000 price points and incorporates data from 525 goods and services. A joint committee comprising Tribhuvan University’s Statistics Department, the Central Bureau of Statistics, and NRB was responsible for the development of the new index.
Governor Adhikari acknowledged that there may still be differences between published prices and actual market prices, but explained that the CPI is based on the overall average of goods, not individual price spikes. This new structure aims to provide a more accurate reflection of the economy compared to previous versions.