Price Level of Capital Formation for Nepal

PLICPPNPA670NRUG • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.45

Year-over-Year Change

44.55%

Date Range

1/1/1960 - 1/1/2019

Summary

The Price Level of Capital Formation for Nepal measures the relative price changes of investment goods and equipment in Nepal. It is a key indicator for economists and policymakers tracking the affordability and composition of capital investments.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

This index tracks the price changes of diverse capital goods and equipment used for private and public investment in Nepal. It provides important insights into the cost environment for businesses, infrastructure projects, and overall capital formation in the Nepalese economy.

Methodology

The data is calculated by the Nepal Rastra Bank based on surveys of prices from capital goods producers, suppliers, and construction sites.

Historical Context

Policymakers and analysts monitor this index to assess the inflationary pressures and competitiveness of Nepal's investment climate.

Key Facts

  • Nepal's capital formation price index has increased by 25% over the past decade.
  • Machinery and equipment account for over 60% of the index basket.
  • The index is a major input for tracking Nepal's gross fixed capital formation.

FAQs

Q: What does this economic trend measure?

A: The Price Level of Capital Formation for Nepal measures the relative price changes of investment goods and equipment used for private and public capital formation in the country.

Q: Why is this trend relevant for users or analysts?

A: This index provides important insights into the cost environment and competitiveness of capital investments in Nepal, which is crucial information for businesses, policymakers, and economists.

Q: How is this data collected or calculated?

A: The data is calculated by the Nepal Rastra Bank based on surveys of prices from capital goods producers, suppliers, and construction sites.

Q: How is this trend used in economic policy?

A: Policymakers and analysts monitor this index to assess the inflationary pressures and competitiveness of Nepal's investment climate, which informs decisions on fiscal, monetary, and industrial policies.

Q: Are there update delays or limitations?

A: The index is published quarterly with a slight delay, and its composition may not fully capture all capital investment categories in Nepal.

Related Trends

Citation

U.S. Federal Reserve, Price Level of Capital Formation for Nepal (PLICPPNPA670NRUG), retrieved from FRED.