Afghanistan: Monthly Market Report Issue 76: September 2026

Please refer to the attached file. KEY HIGHLIGHTS Markets remain functional, but higher global prices, regional uncertainty, trade disruptions and rising fuel costs continue to pressure domestic markets and household purchasing power. MACROECONOMIC AND TRADE DEVELOPMENTS Economic Growth and Household Welfare Afghanistan’s economy continues to recover, supported by domestic demand and the return of large numbers of Afghans. However, rapid population growth limits improvements in per-capita income and living standards. Limited job creation, weak investment and women’s exclusion from labour force continue to constrain household incomes and broader economic potential. Widespread poverty, subsistence insecurity and limited access to basic services further weaken household resilience and the ability to absorb market shocks. Trade Routes and Supply Network Prolonged closures of key eastern and southern borders continue to disrupt established trade routes and alter Afghanistan’s traditional supply networks. Markets are increasingly relied on imports from Iran and Central Asia which requires longer delivery time and higher transport costs. These changes, combined with higher fuel prices, regional trade uncertainty and dependence on imported commodities, continue to put pressure on prices. Exchange Rate The Afghani appreciated by 1. 2% in September to an average of AFN 64. 6/USD, remaining 4. 8% stronger yearon-year and 11% above its three-year average. Currency strength helps cushion imported inflation, but higher fuel costs, trade disruptions and elevated global prices limit the benefit. Inflation (August 2026) Headline inflation was 7. 8% year-on-year in August, with food inflation at 8. 0% and non-food inflation at 7. 7%. Higher costs for food, housing, health and transport continue to weigh on household budgets. Fuel and Logistics Costs Diesel prices increased by 4. 7% in September to AFN 80. 3/litre, 14% above last year and 19% above the threeyear average, adding to transportation and market operating costs.

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