The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.
Karnali Province wages rose 3.09% in FY 2024/25, with the index reaching 103.95. Despite having the smallest share in Nepal’s national index (4.71%), Karnali outperformed the national average (2.63%), driven by development projects and rural labor demand.
Lumbini Province wages rose 3.72% in FY 2024/25, with the index climbing to 103.81. This growth outpaced the national average (2.63%), driven by industrial expansion, trade activity, and infrastructure projects, making Lumbini one of Nepal’s fastest-growing labor markets.
Gandaki Province’s wages rose 2.74% in Q4 FY 2024/25, the highest quarterly increase in Nepal. With its SWI reaching 103.44, Gandaki outpaced the national average (0.27%), fueled by tourism recovery, infrastructure growth, and strong remittance support
Bagmati Province recorded 1.98% wage growth in FY 2024/25, with the index rising to 102.36. The increase is below the national average (2.63%) and highlights economic pressures in the capital region, where wages are lagging behind rising living costs.
Koshi Province saw the slowest wage growth in FY 2024/25, rising only 1.23%, compared to Nepal’s average of 2.63%. With its index at 101.50, Koshi lags behind provinces like Sudurpaschim (+7.44%) and Lumbini (+3.72%), reflecting weaker labor market dynamics and slower industrial expansion.
Nepal’s Salary and Wage Index rose 2.63% in FY 2024/25, with the overall index at 103.22. Sudurpaschim (+7.44%), Lumbini (+3.72%), and Karnali (+3.09%) led wage growth, while Bagmati (+1.98%) and Koshi (+1.23%) saw smaller gains. The data highlights regional disparities in wage growth across provinces.
Nepal’s average wholesale inflation was 3.84% in 2024/25, down from 8.47% in 2022/23, showing improved stability. While prices spiked in winter (Dec +6.52%), they slowed sharply by mid-2025 (July +1.05%), pointing to easing pressures but persistent seasonal risks.
Nepal’s WPI showed strong gains in winter 2024 (Nov–Dec up to +6.52%), but slowed significantly by mid-2025 (June +1.56%, July +1.05%). Seasonal food shortages and construction costs drove winter spikes, while harvest supplies and stable imports brought relief by mid-year.
Nepal’s WPI rose just 1.05% in July 2025 (and 1.56% in June), the slowest growth of the year. Stable food and fuel prices, along with contained manufacturing costs, eased wholesale inflation. This slowdown signals short-term relief but also highlights Nepal’s seasonal price swings.
In December 2025, Nepal’s WPI jumped 6.52% year-on-year, the sharpest rise of the fiscal year. Seasonal demand, festival consumption, and rising costs in food and construction materials drove the surge, raising concerns about potential spillovers into consumer inflation and real estate costs.