Nepal faces rising essential goods prices and stock market losses

Nepal is facing economic volatility characterized by rising costs for essential goods and a decline in the stock market ahead of the Dashain festival season.

Retail prices for staples such as rice, lentils, sugar, and cooking oil have increased by as much as 36 percent over the last six months. Specific items like coriander powder saw a 35.71 percent rise. While Industry, Commerce and Supplies Minister Dipak Kumar Sah claimed government interventions led to a 10 percent price decline, data from the Nepal Retailers’ Association indicates the opposite trend. Market monitoring has been hampered by the absence of a permanent chief at the Department of Commerce.

Simultaneously, the Nepal Stock Exchange (NEPSE) fell 1.62 percent in a single week, marking its fourth consecutive weekly decline. This downturn resulted in investor losses of approximately Rs 73 billion, with market capitalization dropping to Rs 4.450 trillion. All 13 sector indices declined, led by the largest drop in life insurance.