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Afghanistan

Afghanistan: Countrywide Weekly Market Report: Issue 252: Week 3 – June 2025

Attachments

Highlights

Food Items: In the third week of June 2025, national average prices of most food items increased compared to the previous week. The ongoing conflict between Iran and Israel has disrupted trade and transit routes in Afghanistan’s southern and western provinces bordering Iran, leading to higher transportation costs, driven by the spike in fuel prices and increased market uncertainty. As Iran is a key entry point for imported goods into Afghanistan, concerns over further price increase have triggered speculative behaviour among wholesalers and traders, putting additional pressure on local markets. The recent surge in fuel prices, with Iran being a major supplier, is expected to affect the prices of other commodities in the coming weeks. While year-on-year comparisons show significant increases in the prices of cooking oil, salt, and both types of rice (Palawi and Sholae), prices of other food items have declined.

Nonetheless, food prices for some items remain considerably higher than during the pre-government transition period.
Vegetable Items: Vegetable prices, which had been declining due to local harvests, showed mixed trends this week. While supply from local production continues, higher transport costs and market speculation can push prices upward in the coming weeks. Compared to last week, tomato and potato prices declined by 7.3% and 1.4%, respectively, meanwhile onion prices have gone up by 2.8%. Year-on-year comparisons show a significant decline in prices of vegetable items.

Labour Market: The national average labour availability for casual workers slightly increase from 2.2 days to 2.3 days per week, with the average wage for unskilled labour unchanged at AFN 313 per day. However, market instability and higher prices are likely to reduce real income and purchasing power for daily wage workers.

Diesel: The national average diesel price rose to 67.1 AFN per litre this week, marking a significant 14.7% weekly increase. This spike is mainly attributed to reduced imports and disrupted fuel supply routes following the outbreak of conflict between Iran and Israel. Similarly, the global average price also rose to $1.19/litre from $1.18/litre during the last week.

Non-Food Items: Prices of fertilizers and improved seeds showed negligible week-on-week changes. Similarly, year-on-year comparisons indicate a slight decline in the prices of DAP and Urea, while the price of concentrate animal feed has slightly increased. Some of the suppliers of DAP and Urea in the market typically rely on smuggling routes for imports. However, due to the recent situation in Iran, imports have declined, posing a potential risk of price increases in the coming weeks.