Nepal

Nepal Market Watch: No. 7, October 2008

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Situation Report
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**Highlights** - Food prices have largely continued to rise across Nepal and in some parts have been further affected by the closure of the East-West highway in the Eastern and Far-Western Terai, and the Karnali highway due to floods and landslides. - Inflation hit 13.5 % up from 7% recorded last year and this was largely contributed to the rice in food costs. - Districts in the Mid- and Far-Western Hills and Mountains continue to face significant problems of food insecurity due to high food prices, natural disasters and hindered access to markets.