Inflation rate rising in 22 of the 38 states

15 Jul 2022 , 02:12 PM

The majority of states and union territories (UTs) experienced an acceleration in the rate of price increases, despite the fact that the headline retail price inflation rate in June reduced somewhat from the previous month to 7.01 %.

The consumer price index (CPI)-based inflation rate increased in as many as 22 of the 38 states and UTs between May and June. Additionally, Sikkim, one state, saw the same 8.28% inflation rate in June as it did in May.

This indicates that less than 40% of the states and UTs saw reduced inflation in June compared to May. In May, the national average was 7.04 %.

Up to 13 states saw inflation in June that was more than the 7.01 percent national average; Telangana was the only state to have a double-digit increase, at 10.5%. Telangana saw double-digit inflation for the third straight month, with rural regions largely seeing above 10% inflation.

In addition to Telangana, Puducherry’s rural areas also saw double-digit inflation in June, rising from 7.32 % in May to 10.09 %. Despite the fact that no other state reported a double-digit rate of inflation in rural regions in June, Madhya Pradesh and Haryana had both seen price increases of over 10% in April, at 10.12% and 10.25%, respectively. Nevertheless, in those areas, it fell to 8.07% and 8.56%, respectively, in June.

In addition, some states with higher rates of inflation in June, such as Manipur and Meghalaya, had minor price increases. Only 0.6% of Meghalaya’s residents experienced inflation in June, compared to 0.27 % in May, but 3.8% of Manipur residents experienced it during a similar time period.

The only region where the urban inflation rate reached double digits in June was Lakshadweep. There, the inflation rate was 10.84 %, up from just 6.04 % the month before.

“The consumption mix varies from state to state. According to Devendra Pant, chief economist of India Ratings, states where the consumption pattern is more skewed toward certain items–items that witnessed a rise in the inflation rate in June compared to May–will see greater inflation.

Fuel and light, domestic goods and services, entertainment and amusement, and personal care and effects were some of the areas that experienced an increase in the inflation rate in June.