The inflation rate during the first eight months of the current fiscal year was recorded at 2.9 per cent, Governor of the Nepal Rastra Bank (NRB) Chiranjibi Nepal said on Thursday on the occasion of the 62nd anniversary of the central bank.

Country's inflation rate in the last fiscal year was in double digits.

Governor Nepal said that rise in agricultural production, regular supply of power and reduction in inflation rate in India contributed to low inflation in Nepal.

According to the Governor, the price of food and beverage has decreased by 0.4 per cent while the price of non-food items and service sector increased by 5.6 per cent during the review period.

The inflation rate in both the categories was more than 10 per cent in the last fiscal year.

Nepal said that the state treasury has Rs 63.59 billion savings during the first nine months of the current fiscal year while the saving amount was Rs 47.69 billion last year.

He said that the government spending during the review period rose by 46.6 per cent reaching Rs 419.93 billion as well as the country's exports increased by 12.8 per cent, making Rs 48.22 billion amount.

However, the imports have increased by 44.2 per cent and total imports amount was recorded at Rs 628.56 billion. Likewise, the trade deficit during the first eight months of the current fiscal year was recorded Rs 580 billion plus and the current account is in Rs 6.31 billion loss.

The foreign exchange reserve has reached Rs 1074.27 billion during the first nine months of the current fiscal year. On the occasion, Deputy Governor Chintamani Siwakoti said that money laundering has become a challenging job and the quake-damaged physical infrastructures were not reconstructed so far.

Former Governor of NRB Dr Bhekh Bahadur Thapa and designer of Nepal's currency and culture expert Satyamohan Joshi were honoured during the programme. RSS