Scores of protests, strikes and policy changes that disrupted supply chains pushed food prices sharply higher in the first four months of the current fiscal year, with some items rising as much as eight times, according to a government report.

The Price Analysis Report published by the Department of Commerce, Supplies and Consumer Protection in December shows that, with some exceptions, prices of almost all food items were unstable and largely trended upward during the review period. Prices of rice, lentils, meat and meat products continued to climb.

“The prices of vegetables, fruits and food items have increased significantly compared to the producer price due to the involvement of middlemen,” the report said.

Prices of most seasonal vegetables and fruits declined between mid-July and mid-August, reflecting better supply. However, prices of all types of vegetables began to rise thereafter, particularly after the Gen Z-led protests in September, as opportunistic traders took advantage of the volatile political situation.

“There is no stability in vegetable prices and they have fluctuated towards the higher side. During the review period, the price of bitter gourd sharply increased by up to 800 percent, which is not normal,” the report said. Yardlong bean pieces also recorded an 800 percent jump.

Along with internal factors, external variables such as fuel prices and exchange rate movements also affected food prices. During the review period, diesel and kerosene prices declined by Rs3 per litre, while petrol prices increased by Rs2 per litre. Prices of cooking gas and aviation turbine fuel remained stable.

Despite relatively modest transportation costs, prices of goods did not fall as expected. The Nepali rupee depreciated by around 2 percent against the US dollar during the period, adding pressure on prices of imported goods.

“To discourage the involvement of middlemen, it is essential to develop alternative trading mechanisms such as corporations, cooperatives, commercial networks and partnerships to stabilise prices,” the report said.

The department’s report, however, is inconsistent with the recent central bank's macroeconomic report, which indicates that food inflation has been trending downward in recent months. According to the Nepal Rastra Bank report released on January 9, the year-on-year consumer price inflation stood at 1.63 percent in mid-December 2025 compared to 6.05 percent a year ago. It had pointed out that food and beverage inflation decreased 2.05 percent whereas non-food and service inflation stood at 3.75 percent in the review month.

Under the food and beverage category, the year-on-year price index of ghee and oil sub-category increased by 5.52 percent, non-alcoholic drinks by 3.56 percent, milk products and eggs by 2.44 percent while inflation on vegetables decreased by 8.54 percent, spices 8.43 percent, pulses and legumes 5.79 percent.

Gunakar Bhatta, former executive director of the central bank, said different comparison periods could have led to discrepancies between the two reports. “The Rastra Bank compared data from the previous fiscal year, while the department’s report is based on comparisons between months of the current fiscal year,” he said.

Consumer rights activists argue that middlemen continue to operate with political protection, allowing prices of daily essentials to spiral.

Bishnu Prasad Timilsina, general secretary of the Forum for Protection of Consumer Rights-Nepal, said merely publishing reports that cite the role of middlemen is insufficient.

“The department needs to take action against those middlemen who are artificially hiking the prices of daily essentials. The gap between farm-gate prices and consumer prices is too wide and must be strictly monitored,” he said.

According to Timilsina, prices of essentials will not come down unless the government identifies middlemen and takes punitive action. “It is the department’s responsibility to find them and end their involvement in the market,” he said.

He also said shops that fail to display price lists should be fined immediately as per existing legal provisions. Large wholesalers, he added, should factor in consumer interests and refrain from abrupt price hikes. While prices are determined by competition in a free-market economy, an unchecked market needs regulatory oversight by the government, he said.

For the report, five offices of the commerce department—in Biratnagar, Birgunj, Bhairahawa, Nepalgunj and Dhangadi—collected monthly average prices of food items from mid-July to mid-November.

According to the findings, the average price of sona mansuli rice increased by Rs19 per kg, steamed jeera masino by Rs18 per kg, general jeera masino Rs15, basmati Rs66 and coarse rice by Rs19 per kg during the four-month period. Among the surveyed cities, basmati rice prices rose the most in Bhairahawa.

Prices of pulses also surged. Musuro (masino) increased by Rs27 per kg on average, lentils by Rs47 per kg, split black gram by Rs23 per kg, polished chickpeas by Rs34 per kg, non-polished chickpeas by Rs24 per kg and split green gram by Rs58 per kg.

The report noted that persistent price fluctuations have directly affected people’s living standards. Average prices of edible oils climbed sharply, with mustard oil up by Rs128 a litre, soybean oil by Rs40 per litre and sunflower oil by Rs26 per litre in the review period.

Overall, the average price of pulses increased by Rs38 per kg, white peas by Rs49 per kg, and kidney beans and other beans by Rs53 per kg. Cumin prices rose by Rs135 per kg on average during the first four months of the fiscal year, while coriander increased by Rs55 per kg.

Animal protein also became costlier. Egg prices increased by Rs5 apiece on average, mutton by Rs54 per kg and broiler chicken by Rs116 per kg.

Vegetable prices followed a similar trend, with tomatoes increasing by Rs67 per kg on average. Fruit prices also jumped, with apples up by Rs116 per kg and bananas by Rs73 per dozen on average during the review period.