Inflation and supply woes cast shadow over festive market
Summary
Disruptions in supply chains and persistent inflation are dampening Nepal's festive market this year, with rising prices in essential goods and challenges in trade routes impacting consumer spending during Dashain and Tihar.
Key Points
- Disruptions in supply of Dashain-targeted goods and persistent inflation are expected to dampen Nepal's festive market activities this year.
- Year-on-year consumer price inflation stood at 2.72 percent in mid-June 2025, with food and beverage inflation at 0.54 percent and non-food/services at 3.94 percent.
- The Kerung border remains closed due to flash floods, disrupting trade and causing delays in import of festive goods, though Tatopani border has reopened with limited truck movement.
- Prices of essential food items like edible oil, sugar, lentils, and vegetables have risen, with vegetable prices up to 233.33 percent in the past month.
