Kerala’s 12-month streak ends as Telangana tops inflation chart under new CPI
Telangana recorded the highest retail inflation at 4.92% in January, surpassing Kerala, which had previously held the top position for 12 months.
Telangana recorded the highest retail inflation at 4.92% in January, surpassing Kerala, which had previously held the top position for 12 months.
Telangana recorded the highest retail inflation at 4.92% in January, surpassing Kerala, which had previously held the top position for 12 months.
Kerala, which had carried the dubious distinction of recording the highest inflation in prices of daily essentials for 12 consecutive months, found relief in January, with Telangana overtaking it at the top of the chart.
According to the latest report released by the Union Ministry of Statistics, Telangana recorded retail inflation of 4.92% in January, the highest among states. Kerala’s inflation stood at 3.67%, followed by Tamil Nadu at 3.36%, Rajasthan at 3.17% and Karnataka at 2.99%. Within Kerala, rural inflation was higher at 4.18% compared to urban inflation of 3.26%. Among the top five states, food inflation was highest in Kerala at 7.21%, compared to 2.74% in Telangana. Tamil Nadu recorded food inflation of 2.33%, Rajasthan 1.95% and Karnataka 2.92%.
This is the first inflation report released after the Centre revised the base year for calculating retail inflation from 2012 to 2024, updating the Consumer Price Index basket to reflect current consumption patterns. Under the new series, the number of weighted items in Kerala stands at 335 in rural areas and 342 in urban areas, with a combined total of 345 weighted items for the state.
From January to December 2025, Kerala had consistently recorded the highest inflation in the country. In December, the state’s inflation rate had surged to 9.49%. Under the new CPI series, however, Kerala’s inflation for January is pegged at 3.67%. The lowest inflation rates were reported from the northeastern states of Assam, Mizoram and Manipur, all of which recorded inflation below 1%.
At the national level, inflation rose under the new series. As per the old series, inflation in December was 1.33%. Under the revised base year calculation, it increased to 2.75% in January. Even so, it remains well below the Reserve Bank’s 4% tolerance level. Food inflation, a key concern for both the Centre and the Reserve Bank, stood at 2.13% in January. It had been in negative territory in December.
Items that recorded the sharpest price increases last month included silver jewellery, tomato, coconut copra, gold, diamond and platinum jewellery, and coconut oil. Items with the lowest inflation were garlic, onion, potato, pulses and green peas.