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Market Watch 44

In August 2012, prices of most monitored food commodities have reached the highest level sinceSeptember last year. This upward trend is the result of lean season and frequent disruption in supply due to the monsoon.

The year-on-year inflation released by Nepal Rastra Bank remained at 11.5 percent in July 2012 compared to 9.6 percent over the same period last year.

Most road networks that link to the hill and mountain markets from Terai partially impaired by minor landslides caused by monsoon rains which reduced road access and increased transportation costs,resulting to an increase in food prices.

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