By Parameswaran Valeri
Hyderabad: Telangana recorded a retail inflation rate of 6.4 percent, one of the highest in India as the national retail inflation rate is 5.4 percent, revealed the Economic Survey of India, FY 2023-24.
The survey was presented by the Union finance minister Nirmala Sitaraman in the Parliament on Monday, July 22.
While the rate of inflation from the previous year has come down from 8.7 percent to 6.4 percent, Telangana has remained among the top states in the metric for the past three years. While the state recorded the highest rate in the previous financial year, in 2023-24, Manipur, Haryana and Odisha have higher rates than Telangana.
According to the report by the Union Ministry, India’s retail inflation in the rural sector is higher than in the urban sector. The report says that the key factor leading to retail inflation is food. The agricultural industry was affected by extreme weather events, lower reservoir levels, and damaged crops that adversely affected farm outputs and food prices, the economic survey says.
The food inflation based on the Consumer Food Price Index (CFPI) increased from 3.8 percent in FY22 to 6.6 percent in FY23 and further to 7.5 percent in FY24. Food items like cereals, vegetables, spices and milk have seen the highest inflation in prices meanwhile oils and fats have shown a negative price inflation compared to the previous financial year.
According to economic experts, including Dr Madhura Swaminathan, chairperson of the MS Swaminathan Research Foundation, government interventions in the market, both centre and state levels, will help reduce retail inflation.
Setting up government-affiliated grocery stores that sell food items at a reduced price has proven to limit retail inflation in states like Kerala and Tamil Nadu.
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