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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 May 2010 data indicates that recent year-on-year food price inflation is over 14.6 percent. High food prices are driving overall consumer price inflation, which is currently estimated at 10.8 percent.
A nation-wide strike called by the Unified Communist Party of Nepal (Maoist) between 2 May and 7 May heavily restricted the opening of food markets and stopped virtually all food transportation.
Strong supply of chicken has resulted in price reductions of between 11%– 20% in major urban markets and in the Terai.