Manufactured Goods Lead Inflation: Food, Beverage & Tobacco Up 4.51%

The Wholesale Price Index (WPI) for July–August 2025/26 highlights that Manufactured Goods (57.65% weight)are now the biggest driver of wholesale inflation in Nepal, with a year-on-year rise of 1.09%. Within this category, certain sub-sectors are rising faster, led by Food, Beverage & Tobacco, which surged by 4.51% compared to July–August 2024/25.

This jump reflects the combined effects of higher raw material costs, processing expenses, and strong consumer demand. Rising wholesale prices for food products—ranging from packaged goods to beverages and tobacco—signal that consumer-facing inflation may intensify in the coming months. Seasonal demand, festival consumption, and higher transportation costs are also adding to price pressures in this group.

Beyond food-related manufacturing, other industrial categories also showed notable increases. Textiles rose by 4.03%, partly due to import-linked costs and seasonal fashion demand. Rubber and plastics products climbed 1.79%, reflecting global material costs. Transport equipment and parts went up 1.60%, while machinery and equipment recorded a steady 1.13% rise, pointing to ongoing investment demand. Meanwhile, basic metals surged 9.54% compared to June–July 2025, adding further pressure to construction and infrastructure costs.

The data suggests that Nepal’s inflationary pressures are no longer driven primarily by food alone but are increasingly linked to manufacturing and industrial products, which have wider implications for both consumers and businesses. Rising wholesale costs in this sector are likely to pass through to retail inflation, especially in food and construction-related goods.