Economy

Food prices ease in Afghanistan, but economic pressures persist, WFP says

A market in Kandahar City. Feb. 2026. File photo.

Prices for several key food commodities declined across Afghanistan during the second week of May, driven in part by seasonal harvests and improved market supply, the World Food Program said, but the agency warned that broader economic pressures continue to leave many households vulnerable.

The report said prices for wheat grain, wheat flour, cooking oil and high-quality rice all fell compared with the previous week, while vegetable prices recorded sharper declines as seasonal produce entered domestic markets. Tomato prices dropped nearly 16 percent week over week, while potatoes and onions also became cheaper.

Despite those short-term declines, many essential commodities remain significantly more expensive than a year earlier.

According to the report, high-quality rice prices were up 41 percent year over year, sugar prices had risen 31 percent and wheat grain prices increased 18 percent. Fertilizer prices also remained elevated, with urea prices 44 percent higher than last year and DAP fertilizer up 15 percent.

The WFP said domestic markets continued to function with generally adequate supplies, supported by local harvests and continued imports through western and northern trade corridors. However, the agency warned that transportation costs, regional trade uncertainty and dependence on alternative import routes continue to expose markets to external shocks and geopolitical risks.

Afghanistan’s currency strengthened slightly during the reporting period, with the exchange rate reaching 63.6 afghanis to the US dollar, an improvement of 1.3 percent from the previous week. The currency also remained stronger than both last year and the three-year average, according to the report.

Still, the report suggested that many families continue to struggle with declining purchasing power and limited employment opportunities.

Labor availability improved marginally to an average of 1.9 days of work per week, but remained 19 percent lower than the same period last year. The World Food Program said labor market conditions remained weak because of limited job opportunities and growing competition for work.

The agency also noted that the purchasing power of labor-dependent households remained under pressure despite modest improvements in wages and terms of trade. Casual laborers could purchase an average of 10.5 kilograms of low-quality wheat flour with a day’s wage, an improvement from the previous week but still below last year’s levels.

The report comes as Afghanistan continues to face a prolonged economic and humanitarian crisis marked by high unemployment, declining household incomes and growing pressure on public services following the return of millions of migrants from neighboring countries.

According to the WFP’s market analysis, provincial price disparities also remain significant. During the reporting period, Nuristan recorded some of the country’s highest prices for wheat flour, rice, sugar and diesel fuel, while provinces such as Farah, Balkh and Nimroz recorded some of the lowest prices for several key commodities.

The report also found that the cost of the Food Security and Agriculture Cluster’s standard food basket had risen to 6,005 afghanis, about 3.5 percent higher than the transfer value established in May 2024.