Kathmandu, Dec. 15 -- Nepal's inflation has fallen to a 22-year low, reflecting a sharp slowdown in domestic demand as large numbers of people leave the country in search of better income and opportunities abroad.

According to Nepal Rastra Bank, the country's central bank, inflation stood at 1.11 percent in mid-November, down from 5.60 percent in the same period last year. This is the lowest inflation rate recorded in more than two decades. The last time inflation dipped to a comparable level was between mid-May and mid-July of fiscal year 2003-04, when it stood at 1.8 percent.

Economists say inflation in Nepal has never turned negative, and the latest reading marks the lowest level in nearly two-and-a-half decades.

Nara Bahadur Thapa,...