Which states and UTs have the highest and lowest inflation rates in India?
The central government has released data on retail inflation in India. Some states contributed more to the index than others. Know how costly your state became.
Retail inflation in India, or the rate at which prices of commodities that consumers directly buy on a day-to-day basis, has fallen to a five-month-low value of 4.31%. This means that the rate of price increase has dipped, although the prices still continue to rise.
However, inflation rates vary between states. In some states, taxes and logistics costs are higher, making the corresponding products costlier and thereby raising inflation.
Which states topped the list?
Kerala topped the list of states in terms of their overall retail inflation rate in January 2025, with a staggering 6.76% inflation. It was followed by Odisha (6.05%) and Chhattisgarh (5.85%).
Haryana (5.10%) and Bihar (5.06%) were also at the top of the list. Other states with high inflation rates included Karnataka (5.03%), Tamil Nadu (4.94%) and Uttarakhand (4.85%).
Which states had the lowest inflation?
Delhi had the lowest inflation rate among states and Union Territories in India, at 2.02%. Telangana also boasted a very low inflation rate of 2.22% while in Jharkhand and West Bengal, inflation rates were at 2.56% and 3.38% respectively.
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Maharashtra witnessed inflation rate of 3.39% in January 2025 while Rajasthan and Gujarat saw inflation rates of 3.86% and 3.88% respectively.
Other metrics
Bihar reported the highest urban inflation, at 5.90%, while Kerala and Uttarakhand reported 5.81% and 5.62% rates of inflation in urban areas. The lowest urban inflation rates were reported by Delhi (1.96%) and Telangana (2.15%).
Also read: Retail inflation eases to 5-month low: What it actually meant for your wallet
In terms of rural inflation, Kerala, Chhattisgarh and Odisha topped the list at 7.31%, 6.84% and 6.79% respectively. The lowest rural inflation was seen in Jharkhand (1.85%), Telangana (2.34%) and Maharashtra (2.59%).
The consumer price index, which is used to measure retail inflation, was pulled down majorly by vegetable prices. Several other commodities' prices saw a rise in January 2025 as compared to December 2024.
