Soaring Consumer Prices

Dixya Poudel

The lingering effects of the pandemic and the ongoing wars in Russia, Ukraine, and the Middle East have affected the world economy. Nepal is no exception as the nation is seeing a rise in consumer prices amid slow consumerism among its citizens. Prices of vegetables like onions are up as India has highly taxed the export of onions. The pungent bulb is a crucial part of Nepali kitchen and the rise in its price will likely result in lower consumption, largely affecting the flavours of authentic Nepali dishes. Likewise, sugar has become dearer. As most people love their desserts, particularly in special occasions, it has spurned many a food lovers. 

At the advent of rising consumer prices, Nepalis have become cautious when it comes to spending. They have taken to limit their expenditure in all fronts, including their food expenditures. While the youths love to mingle in trendy cafes, many may have to reconsider due to the expenses. Prudent ones are likely to save for the rainy day due to the precarious economic circumstances as the day-to-day costs have become a dismal subject in Nepal. Nepali households are now struggling to keep up with the increasing consumer prices which were particularly high in the festival season. 

As such, the festival season in Nepal takes place in the months of October and November. Like every year, this year too Nepalis rejoiced in the festivities of Dashain and Tihar. However, it took place under the shadow of the newly escalated war between Israel and Hamas. The war may be taking place in the Middle East but its repercussions have been felt globally. There are fears that this war could spill beyond Israel. There are also fears for the global economy that could turn to the worse. Some of such fears have already manifested, among which is the pattern of export and import for many countries. For example, as India has currently limited its export of foods, Nepal is seeing a hike in prices in foods such as rice, sugar, onion, tomatoes and so on. 

Likewise, fuels have become dear too. Subsequently, this festival season, Nepalis spent less than usual and made do with whatever was available to keep up the festival spirit. One can say that among the many adverse effects of full-scale war is a surge in inflation. In fact, it is one of the most appalling effects. And when the food prices skyrocket, on the worst case scenario, it could lead to malnutrition, poor health, and even famine. Wars can thus only cause devastations of a scale that festers throughout countries. Just as the world economy was seeing a gradual growth after the debacle of the pandemic, now there are new economic concerns, spurning from the Middle East dispute. 

For many, even the simple act of putting food on the table has been turned upside down amid increasing consumer prices, unemployment, economic uncertainty, and food insecurity. Particularly, the food inflation has hit hard those who are under the poverty line, baring the grim reality of the world economy. Consequently, there is little solace to be found in the economic situation, not just in Nepal but throughout the world. Unless regulated and managed, the rising consumer prices are going to keep impacting households globally with dire consequences.