Kerala has retained its unenviable distinction as the state with the highest annual inflation rate for daily essentials for the eighth consecutive month. According to a report by the Union Ministry of Statistics, retail inflation in Kerala, which stood at 6.71 percent in June and 8.89 percent in July, rose further to 9.04 percent in August.
Even when compared to the second-ranked state, Kerala’s figures remain disproportionately high. Karnataka recorded the second-highest inflation at 3.81 per cent, followed by J&K (3.75 per cent), Punjab (3.51 per cent), and Tamil Nadu (2.93 per cent). At the other end of the spectrum, Assam (-0.66 per cent), Odisha (-0.55 per cent), and Uttar Pradesh (0.26 per cent) registered the lowest inflation rates.
At the national level, retail inflation reflecting the overall rise in retail prices showed a marginal increase in August, climbing to 2.07 percent from an eight-year low of 1.61 per cent in July. However, the figure remains comfortably below the Reserve Bank of India’s tolerance threshold of 4 percent.
Rural inflation nationwide rose to 1.69 percent in August from 1.18 percent in July, while urban inflation increased to 2.47 per cent from 2.05 per cent. In Kerala too, the sharper burden was felt in rural areas. Rural inflation in the state touched 10.05 per cent in August, slightly up from 10.02 percent in July. Urban inflation, meanwhile, rose to 7.19 per cent in August from 6.77 per cent in July.
The modest national-level rise last month was attributed to higher prices of vegetables, meat, fish, eggs, personal care items, and edible oils compared to July. On the other hand, food inflation, a major concern for the central government and the RBI, eased further. It fell to negative 0.69 per cent in August from negative 1.76 per cent in July, a sharp contrast to the alarming high recorded in October last year.
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