Mountain Belt Inflation at 2.59%: Non-Food Costs Surge Over 5% Despite Food Decline

The latest CPI data for July–August 2025/26 shows that the Mountain belt recorded the highest inflation among ecological regions at 2.59% year-on-year, with the index rising from 103.18 in the same period last year to 105.85 this year. On a monthly basis, inflation increased by 0.25% compared to June–July 2025, reflecting steady price pressure.

The Food and Beverage group (39.20% weight) showed a -1.15% decline year-on-year, with the index dropping from 104.96 to 103.75. This decline suggests that mountain households saw some relief in essential food items like cereals and vegetables, possibly due to seasonal supply adjustments. However, this easing in food prices did little to offset the sharp surge in service-related costs.

The Non-food and Services group (60.80% weight) surged by a striking 5.06% year-on-year, climbing from 102.04 to 107.21. This is the strongest increase among all ecological belts, showing that households in the Mountain region are facing mounting costs in housing, utilities, transportation, education, and healthcare. Given the geographic and logistical challenges of mountain areas, rising service and supply-chain-related costs are becoming the dominant drivers of inflation.

Overall, while food prices provided limited relief, the 5%+ surge in non-food and service costs has made the Mountain belt the most inflation-affected region in Nepal, placing a heavy burden on household budgets.