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

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 again at the forefront of these, for the fourth month running.

 

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

Rural and Urban Divide

Top 10 States with Highest Inflation in April 2025

 

Following Kerala, the most inflation-prone states were:

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

Why Kerala’s Inflation Remains High

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