Food prices drop and currency appreciation in the country

Afghan Voice Agency (AVA): Kabul: According to the office’s report, the largest price decline in the food sector included a 4.7 percent decrease in the price of oil, 4.9 percent in fresh and dried fruits, 9.6 percent in vegetables, and 10 percent in spices.

 

In the non-food sector, the overall rate showed a 0.1 percent decrease, which was mainly affected by a 1.7 percent decrease in the housing index and a 7.9 percent decrease in the treatment and care index.

 

The general monthly inflation index also decreased by 1.2 percent in the month of June, which, according to the analysis of the National Statistics Office, is mainly due to a decrease in food prices and a decrease in indicators such as housing and health services.

 

However, the point-to-point inflation (compared to the previous month) increased by 2.9 percent, indicating a relative increase in prices over a one-year period.

 

In terms of exchange rate, the Afghani was also trading at 69.8 Afghanis per US dollar in June, compared to 70.6 Afghanis in May. This change represents a 1.1 percent appreciation of the Afghani against the dollar compared to the previous month. Compared to the same period last year, the Afghani has increased by a total of two percent.

 

Some economic sources have attributed the decline in food prices to increased imports, reduced seasonal demand, and improved supply chains. The relative stability in the foreign exchange market is also attributed to central bank interventions and reduced import pressure.

 

The decrease in monthly inflation and the growth of the national currency value, in a situation where a significant part of the country's economy is dependent on imports, can be considered a positive sign of relative market management and increased supervisory capacity of the responsible institutions. However, the increase in point-by-point inflation and global food price fluctuations warn that maintaining this trend requires stable economic policies and serious support for domestic production. The continuation of this stability can have a positive impact on the daily lives of people, especially low-income groups.