Transportation and Communication Prices Stay Stable Amid Rising Utilities

Nepal’s mid-month CPI for July–August 2025/26 shows that while non-food inflation rose by nearly 4% overall, some categories such as transportation and communication remained relatively stable, offering a small cushion to households. Transportation costs fell slightly by 0.67% month-on-month, though they were still up 3.94% year-on-year. Rural areas saw transport prices rise 4.92% YoY, while urban areas increased by 3.72%, reflecting fuel price volatility and regional differences in mobility expenses.

Communication services also showed stability, with prices up just 2.69% overall year-on-year and a marginal 0.20% month-on-month increase. Urban households experienced a 2.54% rise, while rural areas saw a slightly higher 3.20% increase. This stability reflects competitive telecom pricing and slower cost pass-through in digital services compared to other essential goods.

In contrast, housing and utilities costs climbed steadily by 1.02% overall, driven by rising expenses in rent, electricity, water, and maintenance. Urban households faced a slightly higher increase (+1.11%) than rural areas (+0.75%), underlining the burden of city living. Meanwhile, miscellaneous goods and services (+10.60%) and education (+7.67%) drove non-food inflation higher, offsetting the stability in transport and communication.

This breakdown shows a diverging picture: while transportation and communication offer temporary relief, the steady rise in utilities, housing, and services continues to push non-food inflation upward. Households may not feel the full impact of transport and communication costs immediately, but higher living costs through housing, education, and miscellaneous services are keeping budgets under pressure.