The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.
Nepal’s Wholesale Price Index rose 2.37% in August 2025, the slowest pace in four years. Compared to double-digit wholesale inflation in 2022/23, cost pressures have eased steadily, reflecting greater stability in food, fuel, and manufactured goods. This trend points to reduced inflationary risks for households and industries in the near term.
Nepal’s intermediate goods inflation eased to 1.14% in July–August 2025/26, reflecting stable input costs in chemicals, plastics, and machinery. This reduces industrial cost pressures but also signals sluggish demand, with wholesale inflation now more concentrated in consumer and construction goods.
Nepal’s construction material prices rose 4.08% in July–August 2025/26, reversing last year’s decline. Non-metallic minerals (+16.73%) and basic metals (+9.54%) drove the rise, raising costs for housing projects, real estate, and infrastructure, with likely pass-through effects on property prices.
In July–August 2025/26, consumption goods inflation rose 3.89%, driven by food and consumer demand, while capital goods remained stable at 1.09%, reflecting slow investment growth. Nepal’s wholesale inflation is thus being powered more by consumer spending than industrial expansion.
Nepal’s Non-Metallic Mineral Products prices jumped 16.73% in July–August 2025/26, reversing last year’s steep decline. Strong construction demand and costlier raw materials have driven the rebound, raising concerns about rising housing and infrastructure costs.
Nepal’s basic metals prices surged 9.54% in July–August 2025/26, driving up construction and infrastructure costs. Steel and iron prices rose sharply due to global market pressures and rising demand, creating inflationary risks across housing, machinery, and industrial sectors.
Nepal’s textile prices rose 5.89% in July–August 2025/26, rebounding after two years of decline. Rising production and import costs, combined with strong festival-season demand, have driven the increase, signaling higher clothing costs for consumers and renewed momentum for textile businesses.
In July–August 2025/26, Manufactured Goods inflation rose 1.09%, with Food, Beverage & Tobacco leading at +4.51%. Rising costs in textiles, plastics, and metals show that industrial and consumer goods are driving wholesale inflation, signaling potential pass-through effects to retail markets.
Nepal’s Fuel and Power wholesale prices fell 3.1% in July–August 2025/26, driven by a 3.99% drop in fuel costs, while electricity remained stable. The decline offers short-term relief for industries and transport, but global energy volatility poses ongoing risks.
Nepal’s Primary Goods inflation hit 3.73% in July–August 2025/26. Food prices rose 3.66%, while non-food primary goods surged 4.80%, signaling continued cost pressure from both consumer essentials and industrial raw materials.