Kerala recorded the highest retail inflation rate among Indian states and Union territories in June, touching 6.7%, according to the latest data released by the Ministry of Statistics and Programme Implementation.
Telangana reported the lowest inflation at -0.9%, indicating deflation, while Andhra Pradesh showed no change from the previous month. Odisha recorded a marginal inflation of 0.5%.
The overall Consumer Price Index (CPI)-based inflation rate for June stood at 2.1%. Of the 22 states and Union territories for which data was published, 12 reported inflations below the national average.
Punjab registered the second-highest inflation at 4.7%, followed by Jammu & Kashmir at 4.4%. Kerala, however, continues to remain an outlier, consistently reporting high inflation rates in recent months.
Economists have observed a possible trend of convergence in state-level inflation rates.
“State-wise inflation data now reveal a statistically significant trend of convergence. Specifically, states with higher rates of inflation are now converging faster towards the national average,” said Soumya Kanti Ghosh, group chief economic adviser at SBI.
He added that one of the long-term effects of Goods and Services Tax (GST) could be a reduction in the cascading impact of prices across states, which may be contributing to this convergence.
Despite signs of alignment, price movements continue to vary sharply across the country. While some states report easing prices, others like Kerala and Punjab continue to face pressure from rising food and service costs.
Experts point out that local factors, including rainfall, supply chain disruptions, and regional consumption patterns, could still cause state-level variations in inflation.