The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.
Nepal’s CPI peaked in November (5.60%) and December (6.05%) of 2024/25, the highest inflation surge of the year. Seasonal food shortages, festival demand, higher transport costs, and rising service expenses combined to drive prices upward before easing in early 2025.
Nepal’s inflation has slowed sharply from 7.74% in 2022/23 to just 1.68% in August 2025/26, the lowest in four years. While food prices have eased significantly, service-driven costs in housing, health, and education remain a persistent challenge for households.
Nepal’s CPI growth in August 2025/26 slowed to just 1.68%, the lowest in four years. While food prices eased, making groceries more affordable, non-food and service costs remain high, showing that inflation is now structurally service-driven.
Nepal’s inflation slowed from 7.74% in 2022/23 to 5.44% in 2023/24, and further to 4.06% in 2024/25. The sharp drop reflects easing food prices and tighter monetary policy, but rising service costs show that inflation is shifting from being food-driven to service-driven.
Nepal’s CPI rose 1.68% in July–August 2025/26, the slowest pace in years, compared to 4.09% in 2024/25 and 7.52% in 2023/24. While consumers are benefiting from falling food prices, non-food and services remain costly, making inflation increasingly service-driven rather than food-driven.
Nepal’s national CPI rose 1.68% year-on-year in July–August 2025/26. Food prices fell nationwide, but non-food and services jumped sharply, with Kathmandu Valley (2.26%) and Mountain belt (2.59%) leading the inflation trend.
Nepal’s CPI rose 1.68% year-on-year in July–August 2025/26. All regions saw food prices decline, but non-food and services jumped sharply (up to 5.06% in the Mountain belt). This shift makes services the new engine of inflation, raising the cost of living nationwide.
The Mountain region saw 2.59% annual inflation in July–August 2025/26. Food costs fell -1.15%, but non-food and services soared 5.06%, making it the most inflation-affected region in Nepal.
Terai inflation stood at 1.33% while Hill inflation was slightly higher at 1.56% in July–August 2025/26. However, non-food costs surged more in the Terai (4.17%) than in the Hill (3.31%), showing that service inflation is a bigger burden in the Terai despite stronger food price relief.
Kathmandu Valley inflation hit 2.26% in July–August 2025/26. Food costs fell -2.10%, but services rose 3.95%, making non-food expenses the main inflation driver in the capital.