Kerala records inflation seven times national average, highest in country for past 1 year

Kerala has once again recorded the highest inflation in the country, registering a steep 9.49 per cent in December, up from 8.27 per cent in November, according to government data released on Monday.

The state's inflation rate is alarming when compared with Karnataka, which has the second-highest inflation in the country at 2.99 per cent.

Meanwhile, national inflation edged up slightly to 1.33 per cent in December from 0.71 per cent in November, according to the Ministry of Statistics and Programme Implementation. This marks the fourth consecutive month in which inflation has remained below the Reserve Bank of India's target range of 2 to 4 per cent.

Rural inflation in the country stood at 0.76 per cent, while urban inflation was 2.03 per cent.

Food inflation in the country remained negative for the seventh consecutive month, at -2.71 per cent, according to government data. The slight rise in overall inflation is attributed to higher prices of personal care and effects, vegetables, meat and fish, eggs, spices, and pulses and products.

In Kerala, however, the inflation rate was nearly seven times the national average. Being primarily a consumption-based economy, the state imports more than 80 per cent of the goods it needs. This, combined with rapid urbanisation, has been reflected in rising prices.

Rural inflation in Kerala stood at 10.77 per cent, while the urban rate was 7.13 per cent. The distinction between urban and rural areas in the state is fast fading, with rural populations benefiting increasingly from higher remittances from abroad.

Experts have attributed higher remittances as a reason for increased spending, which in turn is driving up inflation. The current figure is among the highest ever recorded in the state, indicating sustained price pressures. Inflation stood at 8.56 per cent in October and 9.05 per cent in September.

Among other states, southern states occupy the top four positions in inflation. Andhra Pradesh stands third with 2.71 per cent, followed by Tamil Nadu at 2.67 per cent.