The study looked at the best inflation rate for Nepal from 1978 to 2016. They found that there is a specific inflation rate that is most beneficial for economic growth. The Ordinary Least Squares method showed this rate to be 6.25 percent, while the Hansen method found it to be 6.40 percent. At this optimal rate, economic growth could increase by 4.59 percent. To improve economic growth, Nepal should aim for an inflation rate around this optimal level.