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Market Watch 25

National food price inflation remains of significant concern. Staple food prices, including those of coarse rice and wheat, rose over the past month. Nepal Rastra Bank’s June 2010 data indicates year-on-year food price inflation is over 14 percent for staple commodities.

In recent weeks many major supply roads and trails leading into hill and mountain areas have been obstructed by landslides caused by monsoon rain. The Karnali Highway is operational only to Kalikot. This has pushed prices up by 15- 20 percent in Jumla since mid August. Roads are also impaired by landslides in the districts of Khotang, Sankhuwasabha, Okhaldhunga, Bhojpur, and Taplejung.

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