Telangana Records Highest Inflation in India at 4.92% in January
Hyderabad: Telangana has emerged with the highest inflation rate across India for the month of January, registering a sharp 4.92%. This marks a significant reversal from the negative inflation figures the state had been experiencing in recent months. The January inflation data places Telangana well above the Reserve Bank of India's recommended comfort range of 2% to 3%, raising immediate concerns about mounting price pressures within the state's economy.
State-Wide Inflation Rankings for January
Following Telangana, Kerala recorded the second-highest inflation at 3.67%. Tamil Nadu followed closely with 3.36%, while Rajasthan posted 3.17%, and Karnataka rounded out the top five with 2.99%. This state-level data reveals varied economic pressures across different regions of the country, with southern states particularly affected.
Significance of Revised CPI Methodology
The latest inflation figures carry added importance as they represent the first data release following the Union Ministry of Statistics and Programme Implementation's comprehensive revision of the Consumer Price Index (CPI). This revision involved updating the technical compilation process, including significant changes to the basket of goods and the standards used for calculation.
Notable among these changes is the substantial shift in food item weightage. The adjustment due to changes in the basket accounts for 5.76%, while the change in standards adds another 3.3%. Combined, these revisions have resulted in food now carrying a revised weight of 36.8% in the updated CPI-2024 series.
Expanded Geographical Coverage and Market Inclusion
The CPI-2024 series has substantially widened both its geographical coverage and the number of items being tracked. Nationally, 565 new rural and urban markets have been added compared to the previous 2012 series, providing a more comprehensive picture of price movements across India.
For Telangana specifically, the expansion is particularly dramatic. The number of rural markets used for price collection has increased from just 20 in 2012 to 50 in 2024. Similarly, urban markets have risen from 26 to 39 during the same period. Experts note that CPI calculations in the state will now draw data from 10 towns instead of the previous five, ensuring more accurate and representative inflation measurements.
This methodological overhaul explains part of the volatility in Telangana's inflation figures, as the state transitions from negative inflation to leading the nation in price increases. The expanded data collection points likely capture previously unmeasured price pressures, contributing to the higher reported inflation rate.
