Country: Afghanistan Source: World Food Programme Please refer to the attached file. Highlights Exchange Rate and Trade Dynamics: During the third week of May, the Afghani exchange rate remained relatively stable at AFN 63.8/USD, while remaining stronger than both last year and the three-year average by 9% and 16%, respectively. Domestic markets continued to function with generally adequate commodity availability, supported by ongoing domestic harvests and sustained inflows through regional trade corridors and rail networks. However, transportation costs, regional trade uncertainties, and continued reliance on alternative import routes continue to expose domestic supply chains to external market and geopolitical risks, affecting the consistency of commodity supply and prices across local markets. Food Items: Overall, national average food prices showed a generally declining trend during the third week of May, with most key food commodities recording week-on-week decreases. Wheat grain (-1.7%), wheat flour (high-price and low-price -0.3%), high-quality rice (-1.7%), cooking oil (-1.4%), pulses (-0.4%), sugar (-3.1%), bread (-1.7%), tomato (-12.7%), and potato (-5.9%) all declined during the week. In contrast, low-quality rice (+0.3%), salt (+1.0%), and onion (+0.7%) recorded slight increases. Compared to last year, most major food commodities continue to remain above last year’s levels, particularly wheat grain (+16%), wheat flour (high-price +10%; low-price +13%), rice (high-quality +38%; low-quality +28%), cooking oil (+5%), sugar (+27%), and salt (+10%). Vegetables: Vegetable prices continued to decline during the third week of May, mainly driven by improved seasonal availability and increased domestic market supply. Tomato prices recorded a significant weekly decline (-12.7%), followed by potato (-5.9%), while onion prices increased negligibly (+0.7%) during the week. Compared to last year, potato prices remain substantially above last year’s levels (+27%), while tomato prices have nearly normalized (-1%) and onion prices continue to remain significantly below last year (-38%). Increased arrivals of seasonal produce from several provinces, continued to improve market availability and support downward price movements across major markets. Non-Food Items: Diesel prices remained broadly stable during the week (+0.4%), though prices continue to remain above last year (+12%). Fertilizer prices showed mixed trends compared to the previous week, with DAP declining by 3.4% while urea increased slightly by 0.9%. Despite recent fluctuations, fertilizer prices continue to remain substantially above last year’s levels (+11% for DAP and +45% for urea), maintaining pressure on agricultural production costs during the ongoing cultivation season. Meanwhile, improved seed and animal feed prices remained stable. Labour Market: Labour availability improved slightly to 2.0 days per week, though it remains lower than last year (-18%) and the three-year average (-14%). Seasonal labour opportunities continue to improve gradually in some areas; however, labour market conditions remain weak overall due to limited employment opportunities and increased labour competition.