Is Nepal Expensive?

No, at all. Nepal is one of the cheapest country in South Asia comparing to Bangladesh, Srilanka, and other surrounding countries. Cost of living in Nepal is made cheapest comparison to other country due to the different economic reason. But anyone can upgrade their living style moderately with additional amount of money.

http://edition.cnn.com/2014/03/04/travel/most-expensive-cities

Most Expensive Cities:

Singapore
Paris
Oslo, Norway
Zurich, Switzerland
Less Expensive Cities

Kathmandu, Nepal
New Delhi
Karachi, Pakistan
Mumbai, India
One Example of Pepsi (One Can) prices

Prices paid by consumers, including any discounts, rebates and taxes

CountryCityPriceCurrencyDate
CanadaLloydminster1.02USD24-Sep-12
USAHayfork0.92USD20-Sep-12
USAVirginia0.79USD16-Jan-12
EgyptGiza0.66USD21-Sep-12
LatviaValmieras Rajons0.55USD30-Jul-13
MalaysiaKuala Lumpur0.47USD09-Dec-13
United KingdomLondon0.38USD16-Jan-12
IndiaMumbai0.01USD24-Sep-12
NepalKathmandu0.01USD24-Sep-14

Sources: Agencies