Sharp rise in food prices tightens Nepalese household budgets ahead of Dashain

Nepal Rastra Bank’s latest consumer price index indicates food and beverage inflation of 6.77% year-on-year in mid-August, driven by sharp price gains in ghee and oil (up 15.62%), fruits (15.39%), meat and fish (8.65%) and vegetables (6.90%). The surge coincides with higher fuel costs after the Middle-East conflict and persistent supply-chain bottlenecks, worsening household budgets ahead of the Dashain celebrations. Staples such as mutton, chicken, eggs, ghee, butter, sugar and rice now cost substantially more than a year earlier, while non-food items like transport, clothing and appliances have also risen.

With about 20% of Nepal’s population below the poverty line, the inflation erodes purchasing power for low-income and daily-wage workers. Traders cite multiple intermediaries and weak enforcement of the Consumer Protection Act as contributing factors. The overall price pressure threatens to make the festive season financially burdensome for many families.