Nepal: Food prices to be volatile in 2009

Published on 26 February 2009

Food prices in Nepal will continue to remain volatile in 2009 if cost drivers which were responsible for the high prices last year persist, the United Nations World Food Programme (WFP) said. Domestic cost drivers which caused prices to rise by as much as 40 percent on some food stuffs in 2008 were bandhs and blockades, high transportation costs and transport syndicates. The year-on-year food and beverage inflation in Nepal was approximately 17 percent compared to India's inflation rate of approximately 10 percent. "Global food prices and, more importantly, prices in India will also have an impact on food prices in Nepal," said Richard Ragan, WFP country director.

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