Kerala Continues To Report High Inflation Rate, As National CPI Eases To 3.61%

The retail inflation or the consumer price index dipped to 3.61 per cent in February. This is below the previous month, i.e., January's 4.26 per cent. This drop in inflation rate finally brings the rate of inflation under the Reserve Bank of India's (RBI) primary target or threshold of 4 per cent.

Kerala Records Highest Inflation

This could further aid consumption and in the near future, give more room for the central bank to use its monetary scissors to further cut the benchmark interest rates from its current 6.25 per cent.

Meanwhile, when we look at states that contribute to this inflation rate, the southern state of Kerala continued to record a high inflation rate. The state had an inflation rate of 7.31 per cent.

Uttar Pradesh Price Rice Slows

It was not just one southern state, this time around, compared to the previous months, the southern states cumulatively had a higher rate of inflation than their northern counterparts.

While Telangana recorded one of the lowest CPI of 1.31 per cent. Other states, including Karnataka with 4.49 per cent, Tamil Nadu with 4.05 per cent, Andhra Pradesh with 2.44 per cent, reported an average inflation rate of 3.92 per cent for February.

This, although by little, is still higher than the national average.

The most populous state in the country, Uttar Pradesh, recorded an inflation rate of 3.56 per cent. While Bihar reported CPI numbers of 4.47 per cent, above the national average.

Rural Inflation Eases

The richest state in the country, Maharashtra, recorded the inflation rate of 3.06 per cent, well below the national average. Another industrial state, Gujarat, also had a low rate of under 3 per cent, at 2.98 per cent.

The overall rate of inflation, which has remained a reason for concern dipped, bringing some relief to policymakers. In addition, the Rural and Urban rate of inflation are converging, reducing the gap between the two categories.

The rural inflation rate decreased to 3.79 per cent, while the urban inflation also eased, relaxing to 3.32 per cent.