This study examines the impacts of macroeconomic variables on the inflation in Nepal during 1975-2016. The variables considered for the study is limited to the use of broad money supply, real GDP, Indian prices. The results suggest that all variables considered are significant in long run implying that these variables are the determinants of inflation in Nepal. The results are consistent with monetary theory. The money supply and Indian prices cause inflation in the long-run based on an OrdinaryLeast Squares regression model.
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