Rising prices of daily essentials are squeezing household budgets, hitting fixed-income earners and daily wage workers particularly hard as Nepal heads into the festive season.
Nepal Rastra Bank’s consumer price index shows that food inflation has accelerated significantly compared to a year earlier, with ghee and oil, fruits, meat and fish, and vegetables recording sharp increases.
According to the central bank’s National Consumer Price Index, year-on-year inflation in food and beverages reached 6.77 percent in mid-August. Prices of ghee and oil rose 15.62 percent, while fruit prices increased 15.39 percent during the review period.
Inflation in meat and fish stood at 8.65 percent, while vegetable prices rose 6.90 percent. Sugar and sugar products recorded inflation of 4.61 percent, spices 4.80 percent, and cereal grains and their products 3.08 percent.
The impact of rising prices is increasingly visible in household kitchens, with many commonly consumed food items costing substantially more than they did a year ago.
The increase in fuel prices following the escalation of conflict in the Middle East in February has added to the pressure on household budgets. Weak supply chains, multiple layers of intermediaries and inadequate enforcement of the Consumer Protection Act have further contributed to higher prices, traders and consumers say.
In a country where around 20 percent of the population lives below the poverty line, rising food prices erode the purchasing power of low-income households and daily wage earners, leaving them with less money for other basic needs.
Inflationary pressure is not limited to food. Non-food items and services recorded inflation of 5.52 percent during the review period. Transportation costs rose 13.17 percent, while clothes and footwear increased 5.52 percent. Housing and utilities recorded inflation of 4.45 percent, and restaurant and accommodation services got costlier by 4.16 percent. Here are more prices of essential items that have gone up significantly from what they cost a year ago, as confirmed by store visits.
Essential food items cost more
Prices of several staples and commonly consumed food products have risen over the past year, adding to the financial burden on households preparing for Dashain.
Mutton, which cost Rs1,300-1,400 per kg a year ago, now sells for Rs1,600-1,700 per kg. Chicken prices have climbed to around Rs450 per kg from Rs370-400 a year earlier.
A crate of 30 eggs now costs Rs650-700, compared to around Rs500 last year. Ghee prices have increased to Rs1,300 per kg from Rs1,200, while butter now costs Rs1,000 per kg, up from Rs900.
Sugar prices have risen to Rs130-140 per kg from Rs110 a year ago, although some large retailers, including Bhat-Bhateni Supermarket, continue to sell it for Rs110 per kg.
A 25-kg bag of Jeera Masino rice now costs Rs2,500-2,600, compared to Rs2,100-2,200 last year. Turmeric prices have increased to Rs525 per kg from Rs450.
Mustard oil now costs Rs460 per litre, up from Rs410 a year ago. Sunflower oil prices have climbed to Rs305 per litre from Rs245.
Household appliances and other goods also cost more
The festive season is also a major shopping period for household appliances, clothing and footwear. Prices of several consumer goods have increased compared to last Dashain, adding to the cost of festive shopping.
A 55-inch television is priced at Rs101,790 this Dashain, compared to Rs92,000 last year. A 190-litre refrigerator costs Rs27,290, up from Rs26,000.
An induction stove sold by Salt Trading Corporation costs Rs4,960, compared to Rs4,000 a year ago.
The price of an entry-level smartphone has also risen sharply, with a basic model now costing around Rs28,000, compared to Rs15,000 last year.
Footwear prices have increased as well. Men's sports shoes that cost Rs2,000 a pair last Dashain now sell for Rs2,400. Women's sports shoes have risen to Rs2,100 a pair from Rs1,800.
With prices of both essentials and consumer goods climbing, households are facing a more expensive festive season, particularly those whose incomes have not kept pace with inflation.