Karnali Province Inflation at 3.12% Despite Stable Food Prices

Karnali Province reported an overall inflation of 1.79%, with the main driver being non-food and services inflation of 3.12%. This rise came even as food and beverage prices remained largely stable, slipping by only -0.26%, highlighting how service-related costs are becoming the dominant pressure on household budgets.

Breaking it down, urban Karnali faced higher non-food inflation at 4.05%, compared to 1.73% in rural areas. This indicates that city dwellers are dealing with more intense cost-of-living increases, largely due to housing, education, and service-sector expenses. Interestingly, rural areas experienced only a 0.68% rise in food costs, while urban areas saw a mild decline of -1.03%, reflecting how food availability and pricing are relatively balanced across the province.

Despite being Nepal’s geographically remote and economically less developed region, Karnali’s rising service-sector costs are concerning. The sharp rise in non-food inflation shows that even in areas where food inflation is under control, families are still struggling with education fees, healthcare, and essential services. This trend highlights a structural challenge: limited service infrastructure combined with rising demand creates inflationary pressure even in low-income provinces.