Wholesale prices in Nepal surged to an 8.47% year-on-year increase in mid-June, marking the highest level in 39 months.
The acceleration was primarily driven by a sharp spike in fuel and energy costs, reflecting the broader economic ripple effects of the ongoing crisis in West Asia.
The surge in wholesale costs raises immediate concerns about the transmission of these higher production expenses to consumer prices.
With the Dashain festival approaching, a period traditionally associated with increased consumption and spending, the risk of a broader inflationary spike in the consumer price index is heightened.
This development aligns with a wider regional trend of accelerating inflation pressures.
Recent data from neighboring India showed wholesale price inflation accelerating to 9.87% in June, also driven by fuel and food costs.