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Nepali consumers expect inflation to rise in short term and decrease in the medium term, according to a new survey conducted by Nepal Rastra Bank.

The Inflation Expectations Survey for the fourth quarter was released by Nepal’s central bank on Monday. According to it, the local consumers expect inflation to reach 14 percent in the next quarter and 13.5 percent in the next one year.

This means that in the next three months people expect to rise slightly. But they are positive in the long term, as they expect the prices might fall slightly, says the bank.

The inflation perception stood at 14 percent.

Inflation expectation means the expected price changes in the future and inflation perception means perceived price changes in the past.

The year-on-year consumer price inflation stood at 8.56 percent in the eleventh month of fiscal 2021/22, compared to 4.19 percent last year, according to Nepal Rastra Bank.

The survey, conducted from July 4 to July 11, was based on responses from 31 market areas of 28 cities.

Among the 1141 urban individuals surveyed, 94.7 percent expect prices to rise in the next three months and 94.4 percent expect prices to increase in the next one year.