The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.
In August 2025/26, Nepal’s inflation dropped to 1.68%, falling below India’s 2.07% for the first time in four years. While food price declines drove Nepal’s slowdown, India’s inflation held slightly higher due to agricultural pressures. However, Nepal’s service costs remain a long-term challenge, even as headline CPI looks favorable.
Nepal’s CPI growth slowed to 1.68% in 2025/26, easing food price pressures and providing relief to households. However, non-food and service costs remain high, reshaping household budgets and long-term inflation risks. For investors, this means opportunities in consumption-driven sectors but caution around service-heavy industries.
Nepal’s inflation slowed to 1.68% in August 2025/26, the lowest in four years, signaling progress in taming food-driven inflation. However, rising service costs remain the main challenge, meaning Nepal has eased short-term price pressures but still faces long-term structural inflation risks.
The sharpest price hikes in Nepal occur in October–December, peaking in November (5.60%) and December (6.05%), driven by festivals and winter shortages. By contrast, April–July sees the lowest inflation, supported by fresh harvests and stable supply conditions.
Nepal’s inflation moves in seasonal cycles—peaking in October–December during festivals and winter shortages, and easing in April–July with fresh harvests. While food costs cause sharp swings, services keep overall inflation elevated year-round, creating a mix of seasonal and structural pressures.
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.
