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National food price inflation remains of significant concern. Staple food prices, including those of coarse rice and wheat,rose slightly over the past month. Nepal Rastra Bank’s March 2010 data indicates that recent year-on-year food price inflation is over 18 percent. High food prices are driving overall consumer price inflation, which is currently estimated at 12.6 percent.
Because of the recent Avian Influenza outbreak in Nepalgunj and Nawalparsi districts, poultry supply has been reduced,significantly increasing the price of chicken sold in Kathmandu and other urban markets.
An increase in fuel costs is making food transportation more expensive – this is likely to continue to raise food prices in coming months.