Kathmandu, Aug. 22 -- Economists and traders say that disruptions in the supply chain of Dashain-targeted goods and persistent inflation are likely to dampen festive market activities this year.

Economic activity in Nepal typically sees a significant uptick in September and October, with major festivals like Dashain and Tihar celebrated across communities. An estimated 40 to 70 percent of annual market activity takes place during Dashain, Tihar, and Chhath, according to economists.

However, this year, consumers remain hesitant to spend due to continued high inflation.

"The consumer sentiment is still low as inflation remains elevated, particularly in essential goods," said economist Jagadish Chandra Pokharel.

According to the central ...