Kerala Turns Up the Heat: State Tops India’s Inflation Charts Yet Again

Unknown Apr 02, 2026 550 Views

Kerala has registered India's highest retail inflation in April 2025, far outstripping the national level even as inflation across the board moderated to a six-year low. The most recent Consumer Price Index (CPI) statistics underscore ongoing pressures on prices in some states, and Kerala was...

India's retail inflation softened to 3.16% in April 2025, a new low since July 2019, largely because of a steep fall in food prices. This countrywide relief, however, came through for all areas. Kerala was an exception with a significantly higher inflation rate, demonstrating local economic conditions and continued difficulties facing consumers in the state.

Kerala's Inflation at the Top

Kerala recorded the highest retail inflation in April at 5.94%, significantly higher than the national average of 3.16%.
This is the fourth consecutive month Kerala has taken the lead in retail inflation.

Rural and Urban Divide

Rural Kerala saw a still sharper increase, with a 6.46% inflation, the highest among all states.
Urban inflation in Kerala was 4.91%, also among the highest in the country.

Top 10 States with Highest Inflation in April 2025

Following Kerala, the most inflation-prone states were:

Karnataka (4.26%)
Jammu & Kashmir (4.25%)
Punjab (4.09%)
Uttarakhand (3.81%)
Maharashtra (3.56%)
Haryana (3.51%)
Tamil Nadu (3.41%)
West Bengal (3.16%)

Least Inflation States

Telangana recorded the lowest rate of inflation at 1.26%, followed by Delhi (1.77%), Jharkhand, and Rajasthan (2.2%).

National Trends of Inflation

India’s overall retail inflation dropped to 3.16% in April, down from 3.34% in March, remaining below the Reserve Bank of India’s 4% target for the third straight month.
Food inflation fell sharply to 1.78%, the lowest since October 2021, driven by declining prices of vegetables, pulses, fruits, meat, and fish.

Why Kerala’s Inflation Remains High

Kerala’s economy is heavily consumer-driven, with around 80% of its consumption dependent on imports from other states.
High rates of wages and demographic changes keep pushing prices up, rendering inflation more entrenched in Kerala than in other areas.

Sectoral Highlights

Whereas food inflation fell across the country, the inflation in Kerala remained high because the costs were higher in both rural and urban areas.

Other areas like education and health also experienced inflation rates above 4% across the country, but Kerala's readings were exceptional because of its special economic composition.

Sources: Times of India, Moneycontrol, Onmanorama, Business Standard, Press Information Bureau

Stay Ahead – Explore Now! Mukesh Ambani Visits Badrinath and Kedarnath Temples