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WFP Nepal mVAM Market Update # 3 (July 2021)

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HIGHLIGHTS

Retail prices of most food commodities monitored in 15 major markets across Nepal were relatively stable in July 2021. Compared to June 2021, prices of pulses, fruits and soybean oil decreased slightly, while marginal changes were recorded for prices of cereals such as rice and wheat flour.
Prices of some vegetables and chicken meat however increased.

Overall, markets are functioning well, and showing improvement in July 2021.
Supply and transportation services were stable, and food and non-food commodities were adequate to meet the demand in nearly all locations.
Likewise, most traders observed a medium demand for goods, indicating gradual stabilization in most markets across the country. Localized supply disruptions and food insufficiency were however reported in Sudurpashim province.

The demand for labour – one of the key indicators to measure labour markets- was largely found to be stable. The data collected in July showed that the demand for labour was medium as reported by three in four traders, while one in four traders reported that the demand for labour was high.
In August 2021, the overall inflation, as measured by the Consumer Price Index (CPI), remained at 4.2 percent year-on-year and 0.85 percent monthon-month. The CPI of food & beverage was 5.81 percent year-on-year and 1.31 percent month-on-month. The year-on-year inflation of non-food & services was 2.94 percent and 0.5 percent month-on-month.

The overall market situation and essential commodity prices monitored in 24 markets across the country indicate a gradual improvement in functioning of markets in July 2021. This is likely a result of the continued easing of the COVID-19 related restrictions and relatively few and localized floods and landslides. However, due to the unrelenting uncertainty related to disruptions caused by the COVID-19 pandemics and monsoon season, market situation remains volatile, and can potentially lead to further negative impact on overall food access.