Kerala's inflation stays below national rate, but food prices remain a concern

Thiruvananthapuram: Kerala recorded a retail inflation rate of 4.34 per cent in June, slightly below the national average of 4.38 per cent, even as prices continued to rise across the country, according to data released by the Ministry of Statistics and Programme Implementation on Monday.

Kerala stood 12th among states with the highest retail inflation rates in June. In May, the state recorded a rate of 4.30 per cent.

Telangana topped inflation charts in the country with a rate of 6.36 per cent, followed by Andhra Pradesh (5.39 per cent), Tamil Nadu (5.24 per cent) and Odisha (5.15 per cent).

Retail inflation in India rose to 4.38 per cent in June from 3.93 per cent in May, mainly driven by a rise in food prices. The rise has taken inflation above the Reserve Bank of India's medium-term target of 4 per cent, though it remains within the central bank's tolerance band of 2-6 per cent.

Food inflation, measured through the Consumer Price Index (CPI), stood at 5.32 per cent in June, up from 4.78 per cent in May. Food inflation was higher in rural areas at 5.45 per cent, compared to 5.09 per cent in urban regions.

Among major categories, restaurants and personal care items recorded significant price increases. Inflation in the restaurant and hotel category stood at 6.91 per cent, while personal care and effects category recorded a much higher rate of 16.72 per cent.

For Kerala, a state largely driven by consumption, the impact of rising prices poses a worry for households. However, the increase remained marginal, with inflation rising by only 0.04 percentage points compared to the previous month.

In Kerala, even a moderate rise in inflation can affect consumer spending, where household expenditure on food and services forms a significant part of overall consumption.