Nepal’s Average Wholesale Price Inflation Holds at 3.84% in 2024/25

The National Wholesale Price Index (WPI) data shows that Nepal’s wholesale inflation averaged 3.84% in fiscal year 2024/25, reflecting moderate but persistent cost pressures across food, fuel, and manufactured goods. The index climbed from 150.79 in 2023/24 to 156.59 in 2024/25, highlighting steady upward momentum in wholesale prices despite softer global commodity markets.

Monthly figures show a clear seasonal pattern. Inflation was strongest in the winter months, with wholesale prices rising 5.16% in November 2024, 6.52% in December (the highest of the year), and 4.01% in January 2025. These spikes were fueled by food shortages, festival consumption, and higher input costs in metals and construction-related goods. However, by mid-2025, inflation slowed considerably: June rose just 1.56%, and July only 1.05%, the lowest growth rates of the fiscal year.

The annual average of 3.84% marks a significant improvement compared to earlier years, when wholesale inflation was 8.47% in 2022/23 and 3.92% in 2023/24. This suggests that Nepal is gradually moving toward greater price stability, though seasonal spikes remain a recurring challenge.

For households and businesses, moderate wholesale inflation means reduced cost pressures compared to the past, but the persistence of winter price hikes indicates vulnerabilities in supply chains and agriculture. For policymakers, the priority lies in strengthening storage, distribution, and trade systems to smooth out seasonal swings and protect consumers from inflationary shocks.