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Highlights
Exchange Rate, Trade, and Seasonal Factors: The Afghani exchange rate remained broadly stable during December and around 5 percent stronger than last year, continuing to help moderate import costs. However, trade disruptions persist following the continued closure of the Torkham crossing since mid-October, which has halted inflows from Pakistan, including transit goods. While traders have started to re-route their imports through alternative corridors and increased imports from Iran, India and Central Asian countries, it has helped to ease supply pressures. As winter conditions intensifies, local market supply continues to be limited, increasing reliance on imported food commodities and exerting mild upward pressure on prices. Consequently, prices of most food and non-food commodities remain higher than last year and above the two-year average, reflecting seasonal pressures alongside elevated import and transport costs.
Food Items: National average prices of key food commodities showed mostly negligible week-on-week fluctuations during the 4th week of December. Other than wheat flour, all other food items recorded a slight increase. On a year-on-year basis, prices of wheat grain, wheat flour, rice, cooking oil, and salt increased notably. Similarly, the prices of these commodities remain elevated compared to the two-year, while prices of sugar, pulses, and bread are lower. Overall, food prices remain significantly higher than the same time before the transition of the government in 2021, except for wheat grain and wheat flour.
Vegetable Items: showed mixed week-on-week movements, with tomato prices recording minor increase due to reduced winter availability, potato prices remaining almost the same as last week and onion prices continue to decline due to higher local production and declined exports, mainly to Pakistan. Compared to last year and the two-year average, onion prices remain significantly lower, while tomato and potato prices show minor changes.
Labour Market: Labour market conditions continued to weaken with the onset of winter. Casual labour availability declined to 1.7 days per week, while unskilled labour wages remained low at AFN 297 per day. Compared to last year and the two-year average, labour availability remains significantly lower, highlighting continued contraction in income-earning opportunities.
Diesel: The national average price of diesel continued to decline during the 4th week of December, falling by 3.5% week-onweek to AFN 63.7 per litre, supported by improved supply from Iran and Central Asian countries. Despite the weekly decline, diesel prices remain elevated, standing 7% higher than last year and 3% above the two-year average. Globally, the average diesel price stood at USD 1.24 per litre as of 22 December 2025.
Non-Food Items: Prices of key non-food commodities remained largely stable with negligible week-on-week changes. Compared to last year, DAP fertilizer prices remain significantly higher, while urea, improved seed, and animal feed prices are slightly above last year’s levels but remain below their two-year average