Attachments
Highlights
Exchange Rate: During the past week, the Afghani experienced a sharp depreciation against the U.S. dollar, declining by 7.6% against USD to AFN 79.6/USD, which directly impacted market prices. In response, Da Afghanistan Bank (DAB) conducted USD auctions to stabilize the currency, auctioning $20 million on January 25, 2025, and $25 million on January 27, 2025. These interventions aimed to strengthen the Afghani and mitigate the effects of exchange rate fluctuations. While the sudden rise in the value of the USD was temporary, reaching up to 84 Afghanis per USD at the start of the week, the exchange rate returned to around 76 Afghanis per USD as of January 30, 2025. Meanwhile, market prices experienced temporary fluctuations but remains higher than last week, due to a relatively higher exchange rate.
Food Items: Majority of staple food commodities, such as wheat flour, cooking oil, and rice, are imported into the country. Any changes in the exchange rate directly impact prices in local markets. Prices collected during the fourth week of January show a slight increase in the price of major food commodities due to the depreciation of the Afghani over the past week. Compared to the same period last year, food commodity prices show a mixed trend—while some have decreased, the prices of cooking oil and salt are significantly higher. However, the current prices of major food items remain substantially above preCovid levels and those before the political changes in June 2021, except for wheat grain, wheat flour, and cooking oil.
Non-food Items: The national average prices of non-food commodities also experienced a slight increase compared to last week due to changes in exchange rate. Compared to last week, the price of DAP, Urea and Improved Seed increased by 2.8%, 3.6% and 0.9%, respectively. Whereas, year-on-year changes show a slight decline in the price of these commodities.
Diesel: The national average diesel price was AFN 63.9 per litre in the 4 th week of January 2025, up by 2.8% from last week and higher by 5% compared to last year. It remains 42% higher than pre-Covid levels and 29% above June 2021 prices. As of January 27, 2025, the global average diesel price is $1.19 per litre, which vary significantly across countries, with major oilproducing and exporting nations having substantially lower diesel prices.
Winter Fuel Items: The prices of winter fuel commodities, commonly used for heating and cooking during the winter season, have slightly increased from last week, with charcoal and gas rising by 4.0% and 2.8%, respectively. Compared to last year, the price of charcoal has risen significantly by 11%, and balot wood by 12%, while pine wood has seen a slight increase of 7%. Meanwhile, wood flour prices have declined by 4%. Given the relatively lower price of coal, it is expected to remain the primary choice for heating among vulnerable households during the winter.