Nepalis cut back on food as ‘hyperinflation’ and shortages bite
Summary
Nepalis in Kathmandu Valley are cutting back on festive meals as prices of rice, oil, sugar and vegetables surge and cooking gas shortages persist. Traders and consumer groups blame supply disruptions, floods and possible price manipulation, while economists warn the rising costs could hurt market activity during the festive season.
Key Points
- Prices of essential foods and cooking gas have risen sharply in Kathmandu Valley, forcing households to reduce purchases and festive preparations.
- Supply disruptions after the Rasuwa flash flood and damage to the Prithvi Highway have increased transport costs and worsened shortages.
- Economists warn that weaker demand could slow the market, while consumer groups accuse traders and importers of artificial price hikes.
- The government is under pressure after the supplies minister resigned over LPG shortages and public criticism.
