22 states, UTs see rise in inflation, despite marginal reduction overall

A majority of states and Union Territories (UTs) witnessed a sharper price rise in June, even as the headline retail price inflation rate moderated slightly to 7.01 per cent last month.

As many as 22 of the 38 states and UTs reported a rise in the consumer price index (CPI)-based inflation rate in June versus May. Besides in Sikkim, it was 8.28 per cent in June, the same as in May. This means that less than 40 per cent of states and UTs witnessed a lower inflation rate in June than in May. The national average stood at 7.04 per cent in May.

As many as 13 states reported a higher rate of inflation than the national average of 7.01 per cent in June, with Telangana reporting a double-digit rate of 10.05 per cent.

In Telangana, primarily rural areas witnessed over 10 per cent inflation. This was the third consecutive month of double-digit inflation in the state. Besides Telangana, the rural regions of Puducherry witnessed a double-digit inflation rate of 10.09 per cent in June — a jump from 7.32 per cent in the previous month.

Though no other state reported a double-digit rate of inflation in rural areas in June, Madhya Pradesh and Haryana had witnessed over 10 per cent rate of price rise in April at 10.12 per cent and 10.25 per cent, respectively. But, in those regions, it dropped to 8.07 per cent and 8.56 per cent, respectively, in June.

Some states, such as Manipur and Meghalaya, which saw sharper inflation in June had a moderate rate of price rise. Meghalaya recorded 0.6 per cent inflation in June, against 0.27 per cent in the previous month; in Manipur, the rate was 3.8 per cent in June against 3.15 per cent in May.

Lakshadweep was the only UT where the urban inflation rate was in double digits in June. The inflation rate there stood at 10.84 per cent, compared with just 6.04 per cent in the previous month.

“The consumption basket is not uniform across all states. States where the consumption basket is tilted towards items that saw an increase in the inflation rate in June versus May would witness higher inflation compared to those states where the consumption pattern is tilted towards other items,” said Devendra Pant, chief economist of India Ratings.

Among various segments that saw a rise in the inflation rate in June were fuel and light, household goods and services, recreation and amusement, and personal care and effects.

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