Economic survey reveals Telangana’s persistent inflation issues amidst national challenges
According to the Economic Survey of India for FY 2023–2024, Telangana has one of the highest retail inflation rates in the country at 6.4 per cent, compared to the nationwide average of 5.4 per cent. Union Finance Minister Nirmala Sitharaman presented the survey to Parliament on Monday, 22 July.
For the last three years, Telangana has consistently ranked among the top three states in terms of retail inflation, despite a decrease from the previous year’s rate of 8.7 per cent to 6.4 per cent. Although Telangana had the lowest rate in the previous fiscal year, Manipur, Haryana and Odisha reported higher rates in 2023–24.
A report by the Union Ministry highlighted that India’s retail inflation rate is higher in rural areas compared to urban sectors. The research identified food prices as the primary driver of retail inflation. The economic survey noted that the agricultural sector was adversely affected by severe weather, reduced reservoir levels and damaged crops, impacting farm production and driving up food costs.
The Consumer Food Price Index (CFPI), which measures food inflation, rose from 3.8 per cent in FY22 to 6.6 per cent in FY23 and further to 7.5 per cent in FY24. The most significant price increases were observed in cereals, vegetables, spices and milk, while the costs of oils and fats saw a decline over the previous fiscal year.
