Price Hikes and Quake Recovery Efforts in Nepal

Nepalese daily República ran a story yesterday highlighting price hikes in Gorkha district linked to a surge in the presence of national and international aid organisations to support quake recovery efforts.

Massive presence of I/NGOs trigger price hike in Gorkha

Close to the quake’s epicentre, Gorkha was amongst Nepal’s the worst hit districts.

Such a sudden shift in market dynamics could amount to an additional economic shock that may delay local community recovery efforts further. The trickle down effect is reported to have begun with increases in transport costs now linked to increases in key daily commodities.

Damage to the road network linking Gorkha district to the rest of Nepal, as shown in the map below courtesy the Nepal Logistics Cluster, is no doubt also contributing to price hikes.

Central Region Access Constraints Map – 25 June 2015

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