Purpose of the report The main purpose of this report is to compare the living standard of Nepalese between different years. To achieve this, the report assesses the strategic condition of different sectors including: Availability of employment, Income and Poverty rate. Access to quality healthcare, education and infrastructure. Life expectancy Cost of goods and services Rate of inflation and its effect on Nepalese economy Prospect of growth of industrialization and globalization Impact of technological advancement and globalization Evaluation Methodology and Approach The evaluation framework broadly follows the APA guidelines. A key component of themethodology was to compare and analysis the changes in living standard of Nepalese between different years. The report is based on: Key informant interviews Document reviews Data analysis Nepalese citizens were interviewed regarding the changes in their living standard. Statistics and data related to rate of inflation, rate of industrial and agricultural growth, unemployment, literacy, etc. were collected and analyzed. Limitation of the study: Some practical difficulties in carrying out the study were caused due to lack of data and information. Different sources mentioned different rates so the accurate statistics regarding growth rate of different sectors were not found. Therefore the comparison of different sectors consists of different years. Such as growth rate of industry is compared from 1998 to 2011 whereas rate of inflation is compared from 1976 to 2011.
Inflation Inflation is one of the major concerns of macro economy. It is the sustained rise of general price level and fall of value of money of a certain economy during a period of time. High and variable inflation distorts the smooth functioning of the economy. That is the reason that every economy tries to attain the price stability at the rate of the inflation where the economy will be able to absorb it and gain economic prosperity. This objective is tried to accomplish by the monetary policy formulated by the central bank of each country. For Nepal, NRB formulates the monetary policy. In Nepal, there are three main price indices, namely, Consumer Price Index (CPI); Wholesale Price Index (WPI); and the Salary and Wage Rate Index (SWRI). However, the CPI is the official measure of price level in Nepal. This is because CPI measures inflation impact which is the final measure of prices on households.