Wholesale inflation hits 39-month high as fuel shock from West Asia crisis ripples through economy
Summary
Nepal's wholesale inflation surged to an 8.47% 39-month high in mid-June driven by a 48.14% rise in energy prices amid the West Asia crisis, impacting manufactured goods and signaling rising inflationary pressures for consumers.
Key Points
- Nepal's wholesale inflation reached 8.47% in mid-June, the highest in 39 months, mainly due to a 48.14% rise in energy prices.
- Fuel prices surged significantly after the West Asia crisis, with petrol and diesel prices more than doubling within three months.
- The rise in fuel costs increased transportation and production expenses, leading to higher wholesale prices of manufactured and non-food goods.
- Consumer inflation is expected to rise further as wholesale inflation pressures pass through to retail prices, especially around the Dashain festival.
