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Highlights
Exchange Rate, Trade, and Seasonal Factors: During the third week of January, the Afghani exchange rate remained broadly stable and about 4% stronger than last year, continuing to help contain import costs. However, trade flows remain below normal due to the continued closure of borders with Pakistan since mid-October 2025. Imports of food items are increasingly sourced from Iran, India, and Central Asia, partially easing supply pressures, though the closure of borders with Pakistan continues to affect trade and commodity availability, leading to substitution toward alternative origins. With winter conditions at their peak, domestic supply remains tight, sustaining mild upward price pressure.
Food Items: National average prices of key food commodities remained broadly stable during the third week of January, with negligible week-on-week changes. However, rice prices continue to fluctuate as the availability of Palawi rice, mostly imported from Pakistan, remains limited. While the national average prices of Palawi and Sholae rice increased slightly by 0.9%, consumers are increasingly substituting toward more affordable Indian rice due to constrained supply and high prices of Pakistani rice. On a year-on-year basis, prices of wheat grain, wheat flour, rice, cooking oil, and salt remain significantly higher. Apart from wheat grain and wheat flour, prices of these commodities are also elevated relative to both the three-year average and pre-2021 levels. In contrast, prices of sugar, pulses, and bread remain below the three-year average.
Vegetable Items: showed negligible week-on-week changes, with tomato prices recording minor decrease of 0.7% whereas potato and onion prices increased by 5.0% and 4.1%, respectively. Compared to last year and the three-year average, onion prices remain significantly lower, while tomato and potato prices show slight changes.
Labour Market: Labour market conditions continued to weaken as the winter season progresses. 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 three-year average, labour availability remains low, highlighting continued contraction in income-earning opportunities.
Diesel: The national average diesel price stabilized after the October spike and increased by 1.9% week-on-week to AFN 63.0 per litre. Prices remain 6% higher year-on-year, but 11% lower than the three-year average. Globally, the average diesel price stood at USD 1.23 per litre as of 19 January 2026, up from USD 1.22 during last week.
Non-Food Items: Prices of key non-food commodities remained largely stable with negligible week-on-week changes, with a 1.5% increase in DAP prices. Compared to last year, the prices of DAP and Urea fertilizers, improved seeds and animal feed are slightly higher, meanwhile they are lower compared to their three-year average levels.