Kerala No 1 for 10 months in a row, inflation above RBI target

Kerala has once again topped the list of states with the highest inflation in the country, maintaining its No 1 position for the 10th consecutive month since January. The state recorded an inflation rate of 8.56 per cent for October, according to government data released on Wednesday.

The figure is alarming, as the national average inflation for the month stood at just 0.25 per cent, according to data from the National Statistics Office (NSO).

While inflation at the national level remains well below the Reserve Bank of India’s target range of 2-4 per cent, Kerala’s rate continues to stay far above that level — a trend that has persisted throughout the year.

This month’s figure represents a slight dip from September’s 9.05 per cent, but Kerala’s inflation remains elevated, with rates of 8.89 per cent in July and 9.04 per cent in August, indicating sustained price pressures in the state.

Experts attribute this trend to Kerala’s consumer-driven economy, which makes it more vulnerable to price increases in essential goods and services.

Among states, Jammu and Kashmir ranked second with 2.95 per cent, followed by Karnataka with 2.34 per cent and Punjab (1.81 per cent). On the other hand, Bihar recorded the lowest inflation in October at –1.97 per cent, followed by Uttar Pradesh (–1.71 per cent) and Madhya Pradesh (–1.62 per cent).

The decline in headline and food inflation in the country is mainly attributed to the full month's impact of the decline in GST, a favourable base effect, and to the drop in inflation for oils and fats, vegetables, fruits, eggs, footwear, cereals and products, transport, and communication. The NSO data showed that inflation in rural areas was negative at 0.25 per cent, while in urban areas it was 0.88 per cent.