This South Indian state records highest inflation in April at 5.9%

Kerala was the state with the highest inflation rate in April, while Telangana had the lowest, according to the latest data released by the government. This indicates that some large states are still dealing with inflationary challenges.

The retail inflation data for April, released on Tuesday, showed that Kerala had the highest rate at 5.9%, followed by Karnataka and Jammu and Kashmir, both at 4.3%. Telangana recorded the lowest rate at 1.3%, followed by Delhi at 1.8%, and Jharkhand and Rajasthan at 2.2%.

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Kerala also recorded the highest rural and urban inflation rates. The inflation rate in rural areas was 6.5%, while in urban centres, it was 4.9%. J&K had the second-highest rural inflation rate at 4.6%, while Uttarakhand recorded a 4.9% urban inflation rate, followed by Karnataka at 4.5%. Telangana had the lowest rural inflation rate at 0.4%, and Delhi recorded the lowest urban inflation rate at 1.7% in April.

The data showed that 13 states had retail inflation rates lower than the headline rate of 3.2%. In rural areas, 16 states recorded lower inflation, well below the overall 3.2%.

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An analysis by ratings agency Crisil revealed that the richest segments (top 20%) in both rural and urban areas face a higher burden than their poorer counterparts. This is because core items, which had the highest inflation rate in April, comprise a larger portion of their consumption baskets. “The poorer segments now see a lower inflation rate than the richest, in contrast to the trend seen in fiscal 2025,” said a note from Crisil.

The effect of inflation varies across income groups since the share of spending on food, fuel, and core categories differs for different classes. Essential items, such as food and fuel, take up a greater share of the consumption basket for lower-income households.

(With TOI inputs)