Nepal Consumer Price Index 2025/26: Winners and Losers in Food & Services

Nepal’s inflation story for the first month of FY 2025/26 reveals both relief and pressure for households. The overall Consumer Price Index (CPI) stood at 104.96, which is 1.68% higher than the same month last year and 4.09% higher than three years ago. While the month-on-month rise compared to June–July 2025 was only 0.39%, the underlying trends show a clear divide between falling food prices and rising service-related costs.

On the food side, households experienced some relief. The Food and Beverages index fell by -2.28% year-on-year, largely because of a steep -18.56% crash in vegetable prices. This was further supported by declines in spices (-4.81%)and meat and fish (-2.41%), easing short-term kitchen expenses. However, not all food categories moved in favor of consumers. Ghee and oil jumped by 10.97%, reflecting global market pressures, while fruits rose by 3.01% and milk and eggs climbed 1.83%, making basic nutrition more expensive. Cereals, the cornerstone of Nepali diets, remained persistently costly with a 9.15% increase over three years, though they softened slightly compared to last year.

In contrast, the Non-food and Services category showed steady inflationary momentum, rising 3.95% year-on-year. Within this group, education costs surged by 7.67%, becoming one of the strongest inflation drivers. Clothes and footwear rose 6.84%, and miscellaneous goods and services climbed 10.60%, both of which continue to pressure household budgets. Moderate increases were recorded in housing and utilities (+1.02%), health (+2.98%), and transportation (+3.94%), while insurance and financial services dipped slightly (-0.22%), providing marginal balance.

The data highlights the winners and losers for Nepali households. On the winning side, consumers benefited from cheaper vegetables, spices, and meat, giving short-term relief. On the losing side, essentials like ghee, oil, fruit, milk, cereals, and services such as education and clothing kept inflation sticky. This dual trend shows that while seasonal food swings may ease budgets temporarily, structural inflation in services and core staples remains the bigger long-term challenge.