Kerala Tops Inflation Charts as Telangana Emerges the Coolest State in March

Kerala led India once more for retail inflation, posting an impressive 6.59% in March 2025-nearly twice as much as India's national average of 3.34%, says the National Statistical Office data available. The third month on a trot when Kerala has outpaced the rest of the nation with its rate of inflation puts economic pressures once again in sharp focus.

While the rest of the country experienced a sharp cooling of prices, especially of food items like vegetables, eggs, and pulses, Kerala went against the trend. Experts hold the state's stubbornly high inflation to its distinctive economic profile: its heavy dependence on imports for more than 80% of its consumption, the highest wage levels in the nation, and a robust inflow of migrant labour. These have given rise to a wage-price spiral, in which increasing wages lead to increased prices, which again fuel inflation.

Conversely, Telangana recorded the lowest inflation rate of only 1.06%, due to moderated food prices and a more evenly balanced pattern of consumption. While the country's inflation rate reaches a six-year low, Kerala's inflationary experience reflects the difficulty of sustaining growth in a high-wage, consumerist economy.

Source: Mathrubhumi