December 2025 Sees Sharpest Wholesale Price Jump at 6.52% YoY

The National Wholesale Price Index (WPI) data highlights December 2025 (mid-month of FY 2025/26) as the period with the sharpest inflation spike of the year. Wholesale prices surged by 6.52% year-on-year, with the index climbing to 157.25 from 147.62 in December 2023/24. This makes it the single highest monthly increase in wholesale prices across the fiscal year.

The December surge reflects both seasonal and structural pressures. On the seasonal side, winter demand pushes up prices for food, beverages, and construction-related goods, while festival consumption during Chhath and year-end holidays adds extra demand pressure. Structurally, the price spike was driven by metals, non-metallic minerals, and manufactured goods, which recorded strong rebounds earlier in the year. Rising wholesale food prices also contributed, with staples such as cereals, vegetables, and processed goods facing higher costs due to limited winter supply.

Compared to earlier months, the December increase stands out. For instance, inflation in June 2025 was only 1.56% and July 2025 just 1.05%, showing a much softer price environment. The sudden acceleration in December signals renewed vulnerabilities in Nepal’s wholesale markets, which may carry forward into retail inflation if supply chains remain tight.

This trend also has wider implications for industries and construction projects, as wholesale cost hikes in metals and cement feed into higher real estate and infrastructure expenses. For consumers, it means that the temporary relief from lower wholesale price growth earlier in the year may not fully translate into retail price stability during the winter months.