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Inflation Rate in Nepal Reaches 4.82% After Monsoon Floods: Do Natural Disasters Actually Drive Up Prices?
by Khatapana
Nov 21, 2024 - 3 min read

If you’ve been out to buy vegetables recently, you might have wondered: Am I shopping for veggies or bidding at an auction? Prices have gone through the roof, and your wallet is probably feeling lighter than ever. And that’s now something that you planned for. Neither was anyone planning for the floods and landslides in late September. But interestingly, these unplanned events seem to be related.
So the late rainfall and the disasters that followed didn’t just wash away homes and roads—they also threw our kitchen budgets into chaos. By mid-October, food prices had surged, pushing overall inflation up to 4.82%. That’s nearly a full percentage point jump in just one month!
So how did this happen, and what can be done to prevent something like this in the future?
Why Do Vegetables Cost So Much?
According to the Current Macroeconomic and Financial Situation Report of Nepal for the first three months of the current fiscal year published by Nepal Rastra Bank (NRB), vegetable prices shot up by 25.15% in just one month. If you were wondering why your humble onions, potatoes, and tomatoes suddenly feel like luxury items, this is why. It doesn’t stop there. The cost of pulses and grains went up by 10% and 9.57%, while oil prices also climbed almost 5%.
What’s behind this? It’s not just bad luck. In short, floodwaters ruined food stored in warehouses and blocked roads, which made it harder to get fresh supplies to markets. Less supply, higher demand—boom, prices go up. We’ll dive into the details of this later in the article.
Why Is Inflation Rate in Nepal Lower Than Last Year?
Now there’s a bit of a twist here. Despite all this chaos, the overall inflation rate in Nepal isn’t as bad as it was last year. In the same period last year, inflation was a whopping 7.50%, compared to 4.82% this year. Strange, right? Especially when you think about all the flood damage we just talked about.
So, how did this happen? One reason is that non-food items like clothes, electronics, and services didn’t see the same dramatic price jumps this year. In fact, those prices only increased by 3.49%, which is pretty tame compared to food. Also, last year, Nepal was grappling with other economic pressures—global price hikes, higher fuel costs, and so on. This year, some of that pressure has eased.
Last year, we were dealing with a double pressure—both food and non-food items were getting pricier. This year, the flood damage hit food prices hard, but the rest of the economy didn’t feel as much heat.
Rural vs. Urban: Who's Paying More?
Here’s another interesting bit: the floods hit rural areas harder than cities. Prices in rural areas went up by 5%, compared to 4.76% in urban areas. Why? It’s simple—rural areas depend more on local produce, and when that supply chain gets wrecked, there’s no backup plan. Urban areas, on the other hand, have more access to alternatives, even if they’re pricier.
And if you live in Sudurpashchim Province, you’re probably feeling it the worst—prices there jumped a painful 6.56%, the highest in the country. Compare that to Kathmandu, where the increase was 4.50%, and you’ll see how location really matters.
Why This Keeps Happening (And What Needs to Change)
Let’s face it: this isn’t the first time natural disasters have pushed up prices, and it won’t be the last. But the real question is, why do we keep finding ourselves in this situation?
One big issue is the lack of preparation. When floods hit, tons of food stocks got destroyed, and supply chains broke down. What if we had better storage facilities that could withstand floods? Or roads designed to stay open even in bad weather?
The way we transport and store food isn’t very efficient to begin with. Add a disaster to the mix, and things spiral out of control.
Many of the roads we depend on, especially in rural Nepal, simply can’t withstand heavy rains. They wash out, crumble, or get blocked, leaving communities cut off and supply chains in chaos. If we invest in stronger, flood-resistant roads and bridges, we could keep food moving even during the worst weather. Better infrastructure isn’t just about convenience; it’s about making sure essentials like vegetables and grains reach markets without delays or price surges.
Another game-changer could be smarter backup plans for food distribution. Imagine if surplus food from less-affected areas could be rerouted to regions facing shortages. With better coordination and planning, we could avoid panic buying, stabilize prices, and make sure everyone has enough to eat—even during a crisis. It’s a simple idea, but one that could make a huge difference when disaster strikes.
So, What’s Next?
Disasters will always happen. We can’t control the rain or stop the floods, but we can control how we prepare for them. With stronger systems—better storage, resilient roads, and solid disaster plans—we can bounce back faster and stop these disasters from emptying our wallets.
Until then, let’s stay informed, keep asking questions, and push for change. Because, really, shouldn’t basic vegetables come with a side of comfort—not financial stress? What do you think? How can we all work together to make this better?