Kerala registers highest retail inflation at 6.7% in June; Telangana lowest at -0.9%

Kerala recorded the highest retail inflation rate in the country at 6.7% in June, according to the latest data released on state-wise Consumer Price Index (CPI). Telangana reported the lowest inflation rate at -0.9%, followed by Andhra Pradesh with a flat reading and Odisha at 0.5%.

The all-India retail inflation rate for June stood at 2.1%. Out of 22 states and Union territories for which data was published, 12 reported inflation rates lower than the national average, reported TOI.

Punjab registered the second-highest inflation at 4.7%, followed by Jammu & Kashmir at 4.4%. Kerala has consistently reported higher inflation rates in recent months, remaining well above the national headline rate.

Long-term impact of GST on inflation trends
Economists have observed a pattern of convergence in state-level inflation figures. States with historically higher inflation rates appear to be aligning more closely with the national average.

“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. Apart from many other reasons, we believe one of the big long-term structural benefits of GST implementation has been a gradual reduction in the cascading impact of prices across states. This could be one of the reasons for the gradual convergence in state-wise inflation prints over time,” TOI quoted Soumya Kanti Ghosh, group chief economic adviser at SBI, as saying.

The retail inflation data for June reflects both regional price pressures and the broader trend of economic alignment across states.(With inputs from TOI)