World Food Programme Reports Afghanistan Annual Inflation Rose to 8.6 Percent in April

The World Food Programme reported that Afghanistan's annual inflation rate reached 8.6 percent in April, up from 7.6 percent the previous month. Food inflation stood at 8.5 percent while non-food inflation measured 8.8 percent.

Rising prices for grains, edible oil, vegetables, housing, transportation and health services drove the increase. Afghanistan's heavy dependence on imports left the economy exposed to disruptions in regional trade routes.

The afghani held steady in May at an average rate of 63.9 afghanis per US dollar. Remittances, continued domestic use of the local currency and shifts to longer alternative routes through Central Asia and western corridors helped maintain this stability after border closures with Pakistan and trade disruptions involving Iran raised transport costs.

Food prices showed mixed movements in May. Prices for wheat, wheat flour, edible oil and legumes declined, while sugar and imported rice prices increased sharply on an annual basis. Plawi rice rose 40 percent and shola rice rose 28 percent compared with the same period a year earlier.

Labor market conditions remained weak. Unskilled workers averaged 1.9 work days per week, and the earnings of a typical day laborer covered only 47 percent of the World Food Programme standard food basket.