WPI Growth Slows in June–July 2025: Index Climbs Only 1.05%

Nepal’s Wholesale Price Index (WPI) data shows a marked slowdown in mid-2025, with growth in June (1.56%) and July (1.05%) representing the weakest inflationary momentum of the fiscal year. The index stood at 155.03 in June and 156.06 in July, compared to 152.65 and 154.44 in the same months of 2023/24. This slowdown contrasts sharply with the earlier months of the fiscal year, when wholesale inflation peaked at 6.52% in December 2024 and remained above 4% during early 2025.

The muted rise in June–July reflects stabilized food prices, particularly cereals and vegetables, supported by harvest inflows and improved supply conditions. Fuel and power prices also eased slightly, cushioning industrial and transport costs. On the manufacturing side, price growth remained contained, with only modest increases in machinery, textiles, and consumer goods. This moderation indicates that supply chains were functioning smoothly during mid-2025, easing cost pressures for producers and traders.

For households, this slowdown at the wholesale level provides relief signals that could feed into softer consumer inflation (CPI). For industries, particularly in manufacturing and construction, stable input costs in June–July reduce the risk of budget overruns and improve profitability. However, the sharp contrast with December’s spike also underlines Nepal’s seasonal inflation volatility, where winter shortages and festival demand sharply lift wholesale prices.