#NepalInflation #CPI2025 #Food
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By Sandeep Chaudhary

Nepal’s CPI Mid-Month Report: Winners and Losers Across Food & Services

Nepal’s CPI Mid-Month Report: Winners and Losers Across Food & Services

The mid-month CPI report for July–August 2025/26 offers a mixed picture of Nepal’s inflation, revealing clear winners and losers across food and non-food categories. The overall CPI rose by 1.68% year-on-year, reaching 104.96 points, with rural inflation at 1.65% and urban inflation slightly higher at 1.70%. While households saw relief in certain food items, the rise in non-food essentials kept living costs elevated.

Among the winners (price declines) were food staples such as vegetables, which crashed by 18.56% overall (urban: −19.29%, rural: −16.88%). Pulses (−1.51%) and spices (−4.81%) also became cheaper, easing part of the burden on kitchens. Sugar and sugar products dipped modestly (−0.20%), and meat & fish recorded a mild decline (−2.41%). These decreases helped pull down the overall food and beverages index by 2.28% year-on-year, softening household grocery expenses.

However, the losers (price increases) came from both food and non-food categories. Within food, ghee & oil surged by 10.97%, reflecting import dependency and festival demand. Milk products & eggs (+1.83%) and fruits (+3.01%) also rose, increasing costs for daily consumption. On the non-food side, inflation was driven by education (+7.67%), clothes & footwear (+6.84%), and miscellaneous goods and services (+10.60%). Housing & utilities added further pressure (+1.02%), while health services rose moderately (+2.98%).

This divergence shows that while households benefited from cheaper vegetables, pulses, and spices, these savings were offset by rising costs in oil, education, and services. The result is a complex inflation environment where some families may feel relief in groceries but still face higher bills in schools, utilities, and essential non-food services.

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