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Afghanistan
Economic Overview
Headline and food inflation have been in decline over the past year
Since April 2023, a persistent deflationary trend has been evident, marked by dwindling household savings, reduced public spending, and adverse impacts on farmer incomes due to bans on opium cultivation.
This downturn in inflation rate can also be attributed to a combination of decreasing domestic prices for key food commodities as a result of global price trends, as well as the stability of the Afghani (AFN) throughout the past year.
The AFN has remained stable against the USD since March 2022
The AFN has consistently maintained its stability against the USD since March 2022. There has been a significant appreciation between January and March 2022, primarily due to United Nations cash shipments and measures taken by the de facto authorities to control illicit foreign currency exports