Spices & Pulses Decline While Fruits and Milk Products Rise: Nepal CPI Breakdown

The mid-month CPI data for July–August 2025/26 highlights contrasting movements within Nepal’s food basket, painting a mixed inflation picture. On the downside, spices and pulses registered notable price declines, easing some pressure on household budgets. Spices fell by 4.81% overall, with urban prices dropping even more sharply by 6.00%, reflecting reduced demand and seasonal supply improvements. Similarly, pulses and legumes declined by 1.51%, with rural areas showing a bigger fall (−2.53%) compared to urban (−1.03%). These declines reflect favorable harvest conditions and steady supply from both domestic and cross-border markets.

On the upside, certain food categories recorded steady increases. Fruits rose by 3.01% overall, with urban areas up by 1.89% and rural prices rising as high as 6.68%. The increase points to seasonal shortages, import dependency, and transport costs pushing prices higher. Milk products and eggs also climbed 1.83% overall, with urban consumers facing a sharper 2.47% rise, while rural areas saw a modest 0.15% increase. These reflect both higher production costs and sustained demand for dairy products across the country.

The divergence between falling spices and pulses on one hand, and rising fruits and dairy on the other, underscores the volatile nature of Nepal’s food inflation. While some essentials are easing, others are becoming costlier, leaving households with a mixed inflation burden depending on their consumption habits. The shifts also demonstrate how rural and urban households experience inflation differently, with rural families benefiting more from cheaper pulses, but also being hit harder by fruit price hikes.