
The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.

Nepal’s CPI stood at 104.96 in July–August 2025, up 1.68% year-on-year. Consumers benefited from cheaper vegetables and spices, but faced higher costs for oil, fruit, milk, and cereals. Investors should note the structural rise in education (+7.67%), clothing (+6.84%), and services (+10.60%), signaling where long-term inflation—and opportunities—are headed.

Nepal’s CPI for July–August 2025/26 reached 104.96, up 1.68% year-on-year. Vegetables (-18.56%) and spices (-4.81%) brought short-term food relief, but rising costs of ghee & oil (+10.97%), education (+7.67%), and transport (+3.94%) kept inflation steady. The data shows that households face falling prices in daily food items but higher long-term costs in services and essentials.

Nepal’s July–August 2025 inflation reached 104.96, up 1.68% year-on-year. While food prices fell due to a sharp -18.56% drop in vegetables, education costs surged 7.67%, alongside clothing and services, driving non-food inflation higher. This indicates that households are getting temporary relief on food but face persistent structural pressure from education and services.

Nepal’s CPI reached 104.96 in July–August 2025, up 1.68% from last year, as vegetables (-18.56%) and spices (-4.81%) fell sharply, but ghee & oil (+10.97%), fruit (+3.01%), and education (+7.67%) drove costs higher. The winners for households were in food relief items, but the losers were essentials and services, leaving overall living costs elevated.

Nepal’s mid-month CPI data shows a sharp 18% drop in vegetables, bringing relief to households, but rising costs of ghee & oil (+10.97%), fruit (+3.01%), and milk (+1.83%) continue to weigh on budgets. Non-food inflation remains steady at 3.95%, driven by education and service costs, keeping the overall cost of living elevated despite short-term food relief.

Non-food inflation in Nepal remains relatively stable at 3.95% year-on-year, even though education, clothing, and miscellaneous services are rising steeply. The moderation comes from stable housing, mild healthcare, and a small decline in financial service costs. This balance has kept non-food inflation contained, but rising education costs are emerging as a long-term structural pressure on household budgets.

Cereal and pulse prices in Nepal have climbed by over 9–12% compared to three years ago, placing a direct burden on household budgets. Although vegetables and spices have become cheaper, the persistence of higher costs in core staples means families continue to struggle with rising food bills, highlighting structural food inflation risks.

Nepal’s inflation in July–August 2025 reveals a dual trend: food inflation has eased due to falling vegetable and spice prices, but the non-food sector, led by education, clothing, and services, continues to exert upward pressure. This means households are benefiting from cheaper vegetables in the short run but still face rising long-term costs in education, clothing, and essential services, keeping the overall cost of living elevated.

Vegetables offered relief with an 18% drop, but rising oil, milk, and fruit costs offset the benefit, keeping Nepal’s food inflation under pressure. The divergence highlights that while short-term seasonal factors can ease prices, underlying food costs remain elevated.