Afghanistan's Markets Show Signs of Strain Despite Limited Volatility

Afghanistan's markets showed limited week-on-week volatility in the third week of September, but underlying price pressures remained evident. Rising fuel prices and higher import costs increased transportation and supply-chain costs, exerting upward pressure on market prices. Rice, wheat flour, cooking oil, sugar, salt, and potato prices remained elevated compared to last year, while weak labour availability and subdued purchasing power constrained household food access.

Food markets recorded mixed but generally modest movements during the week. Several commodities experienced minor price adjustments, with persistent increases in rice, wheat flour, cooking oil, sugar, salt, and potato prices.

Rice prices edged down during the week, but both varieties continued to register substantial annual increases of 21% and 35%, respectively. Wheat grain and flour prices recorded negligible weekly increases, but remained 15%, 13%, and 8% higher than last year, respectively.

The Terms of Trade (ToT), which reflects purchasing power, remained constrained for both labour-dependent households and pastoralists. The nominal casual labour ToT declined slightly to 10.1 kg of low-price wheat flour, representing a 15% decline from last year and an 11% decline against the three-year average.