Retail inflation dropped to its lowest level in three months at 5.02 percent in September, primarily due to a decrease in food prices, as announced by the government today. This inflation rate falls below the Reserve Bank of India’s (RBI) target of keeping it below 6 percent, a goal that hasn’t been met for the past two months.
Some states with inflation rates higher than the national average include Rajasthan (6.53 percent), Haryana (6.49 percent), Karnataka (6 percent), Telangana (5.97 percent), and Odisha (5.87 percent).
The data reveals that Rajasthan has the highest inflation rate among states. Rajasthan is currently governed by the Congress, and it is worth noting that Assembly elections are scheduled in the state next month.
Haryana, where the BJP holds power, comes in second with an inflation rate of 6.49 percent. It’s interesting to note that the BJP is not in power in the other three states—Karnataka, Telangana, and Odisha—where high inflation rates were recorded. Consequently, four out of five states with high inflation are governed by non-BJP parties, according to the data.
In August, the inflation rate based on the consumer price index (CPI) was 6.83 percent, and in September 2022, it was 7.41 percent. The lowest inflation rate recorded in recent times was in June of this year when it was at 4.87 percent. The Reserve Bank of India primarily considers retail inflation when making decisions in its bi-monthly monetary policy meetings.