Attachments
Highlights
Exchange Rate, Trade, and Seasonal Factors: The Afghani exchange rate continue to marginally appreciate against the USD during the first of January and remains 5 percent stronger than last year, continuing to help moderate import costs. Trade flows remain constrained following the prolonged closure of the Torkham crossing since mid-October 2025, which continues to disrupt inflows from Pakistan, including transit goods. In response, traders have increasingly re-routed imports through alternative corridors and expanded sourcing from Iran, India and Central Asian countries, partially easing supply pressures.
Nevertheless, with winter conditions peaking, domestic market supply remains tight, increasing reliance on imports and exerting mild upward pressure on prices. As a result, prices of most food and non-food commodities remain higher than last year and above the three-years average, reflecting seasonal factors alongside elevated import and transport costs.
Food Items: National average prices of key food commodities showed largely negligible week-on-week changes during the first week of January. However, rice prices continued to rise amid the ongoing trade closure with Pakistan, with national average increases of 2.7 percent for Palawi rice and 4.1 percent for Sholae rice. 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 three-years average, while prices of sugar, pulses, and bread are lower. Overall, food prices remain significantly higher than pre-2021 levels, 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. Compared to last year and the three-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 1.6 days per week, while unskilled labour wages remained low at AFN 297 per day. Compared to last year and the threeyear average, labour availability remains low, highlighting continued contraction in income-earning opportunities.
Diesel: The national average price of diesel continued to decline during the first week of January, falling by 3.9 percent weekon-week to AFN 61.2 per litre. Compared to last year, prices remain 3 percent higher, while they are 14 percent lower than the three-year average. Globally, the average diesel price stood at USD 1.23 per litre as of 05 January 2026.
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 three-year averages