The inflation will hit 12 percent within one year, shows a survey by the Nepal Rastra Bank (NRB).

“The median inflation expectations for three months and one year ahead stands at 10 percent and 12 percent respectively," the central bank said in ‘Inflation Expectations Survey (IES)’ for the first quarter of the Fiscal Year 2022-23.

“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 expectation in the near and medium term.”

The results are based on responses from 2,040 individuals. A total of 899 more individuals took part in the survey compared to the earlier.

The central bank said 86.6 percent of respondents expected price the level to increase in the next three months.

Likewise, 95.7 percent of respondents have expected price level to increase over the next one year.

The share of respondents expecting price increases in next three months has decreased from mid-July, 2022, while the share of respondents expecting price increase over the next one year has slightly increased, the report states.

The survey was conducted on October 9-15 among individual respondents from 60 market areas of 57 cities through field interviews.