Nepal Price Index Trends Explained (2025/26)
Nepal tracks several price indices that together tell the story of price movements across the economy. This explainer covers the key indices and their trends.
Key Price Indices
| Index | What It Measures | Current Trend |
|---|---|---|
| CPI (Consumer Price Index) | Retail prices paid by households | 2.13% avg, 3.62% latest — Rising |
| Export Unit Value Index | Average export prices | 103.78 avg — Rising (+3.57%) |
| Import Unit Value Index | Average import prices | 97.04 avg — Rising (+2.54%) |
| Terms of Trade | Export/Import price ratio | ~106.94 — Slightly declining |
CPI: The Consumer Story
CPI is what matters most to ordinary Nepalis. At 3.62% (March 2026), prices are rising faster than earlier in the year. Madhesh Province (4.95%) faces the highest price pressures, while Karnali (2.21%) remains low. Food prices are the primary driver.
Export Prices: Getting More for What We Sell
The export unit value index at 103.78 means Nepal gets about 3.78% more for its exports than in the base year 2022/23. This is positive — driven by higher-value exports like cardamom and processed oils.
Import Prices: Paying More for What We Buy
The import unit value index at 97.04 means import prices are still about 3% below the base year on average. However, the trend is rising (96.43→98.88 over 8 months), driven by NPR depreciation making imports costlier in rupee terms.
How They Connect
Rising CPI inflation is partly caused by rising import prices (transmitted through exchange rate depreciation). When import prices rise, the cost of petroleum, food, and consumer goods increases for Nepali consumers. Meanwhile, higher export prices boost earnings for exporters and the trade balance.
Conclusion
All of Nepal's key price indices are trending upward in 2025/26. While the export-import price balance remains slightly favorable, the overall price environment is shifting toward higher inflation, driven by exchange rate depreciation and seasonal food price pressures.