Primary Goods Inflation at 3.73%: Food Surges While Non-Food Climbs 4.8%

The latest Wholesale Price Index (WPI) data for July–August 2025/26 shows that Primary Goods, which carry a significant weight of 33.59% in the index, recorded a sharp inflation of 3.73% year-on-year. This rise highlights the continued importance of raw food and non-food materials in shaping overall price dynamics in Nepal’s economy.

Within this category, food prices surged by 3.66%, reflecting ongoing pressure in cereals, vegetables, fruits, and other staples. Seasonal demand, coupled with supply-chain costs, has kept wholesale food inflation elevated despite recent retail price stabilization. For households, this means that while consumer-level prices have shown signs of cooling, underlying wholesale costs may create upward pressure in the near future.

On the other hand, non-food primary goods climbed by 4.80%, outpacing food inflation. This growth was largely driven by raw materials, forestry products, and other agricultural non-food items that are heavily tied to construction, manufacturing, and industrial activities. The rise in non-food goods highlights how broader economic recovery and demand in infrastructure-related sectors are feeding into higher wholesale prices.

Overall, the sharp rise in both food and non-food primary goods indicates that supply-driven costs remain a core source of inflationary risk in Nepal, with potential spillover effects into manufacturing and consumer markets in the coming months.