Nepal’s Wholesale Price Index Rises 2.37% in August 2025: Inflationary Pressures Ease

The National Wholesale Price Index (WPI) for August 2025/26 shows a 2.37% year-on-year increase, reaching 159.28 compared to 155.60 in August 2024/25. While wholesale prices continue to climb, the pace of growth has eased significantly compared to previous years—3.66% in August 2024/25, 4.34% in 2023/24, and a sharp 12.58% in 2022/23. This indicates that Nepal’s wholesale inflationary pressures are cooling, offering some relief to producers, traders, and consumers.

Breaking down the monthly trend, inflation has clearly moderated. During 2022/23, Nepal experienced double-digit wholesale inflation, with prices soaring on the back of global fuel shocks and supply chain disruptions. In 2023/24, growth slowed to below 5%, and by 2024/25, the pace had stabilized between 3–6% for most months. Now, in August 2025, the 2.37% rise is the lowest in four years, suggesting greater supply stability and softer cost-push pressures in key sectors like food, fuel, and manufactured goods.

This easing is important because wholesale prices often feed into consumer-level inflation (CPI). Lower WPI growth suggests that businesses may face fewer cost burdens in raw materials, food, and industrial inputs, which could help stabilize retail prices. However, risks remain in sectors such as metals and construction materials, which showed sharp price rebounds earlier in 2025, potentially putting upward pressure on costs later in the year.