22 states, UTs see rise in inflation, despite marginal reduction overall
Though the headline retail price inflation rate moderated a tad in June to 7.01 per cent compared with the previous month, the majority of states and union territories (UTs) saw an increase in the rate of price rise.
As many as 22 out of the 38 states and UTs saw a rise in the consumer price index (CPI)-based inflation rate in June versus May. And, one state, Sikkim, saw the same rate of inflation at 8.28 per cent in June as in May.
This means that less than 40 per cent of states and UTs saw a lower inflation rate in June than in May. The National average stood at 7.04 per cent in May.
As many as 13 states witnessed a higher rate of inflation than the national average of 7.01 per cent in June, with one state, Telangana, reporting a double-digit rise at 10.05 per cent.
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In Telangana, it was primarily the rural areas that witnessed over 10 per cent inflation, which saw a third consecutive month of double-digit inflation.
Apart from Telangana, the rural regions of Puducherry also witnessed double-digit inflation rate at 10.09 per cent in June, which was a jump from 7.32 per cent in the previous month.
Though no other state reported a double-digit rate of inflation in rural areas in June, Madhya Pradesh and Haryana had witnessed over 10 per cent rate of price rise in April at 10.12 per cent and 10.25 per cent, respectively. However, in those regions it dropped to 8.07 per cent and 8.56 per cent, respectively, in June.
Besides, some states such as Manipur and Meghalaya that saw higher inflation in June had a moderate rate of price rise. Meghalaya recorded just 0.6 per cent inflation rate in June against 0.27 per cent in the previous month, while Manipur saw it increasing to 3.8 per cent from 3.15 per cent in this period.
Lakshadweep was the only area where urban inflation rate was in double digits in June. The inflation rate there stood at 10.84 per cent, compared with just 6.04 per cent in the previous month.
“The consumption basket is not uniform across all states. The states where consumption basket is tilted towards items that saw an increase in the inflation rate in June versus May would witness higher inflation compared to the states where the consumption pattern is tilted towards other items,” said Devendra Pant, chief economist of India Ratings.
Among various segments that saw a rise in the inflation rate in June were fuel and light, household goods and services, recreation and amusement, personal care and effects.
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