BHUBANESWAR: Odisha has recorded one of the lowest inflation rates among large states in January 2026, revealed the provisional data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Thursday.
According to the first reading of the new consumer price index (CPI) series with 2024 as the base year, the combined retail inflation in Odisha stood at 1.87 per cent (pc), ranking it second lowest in the country among states with significant populations. The rate was marginally above Chhattisgarh (1.67 pc) and well below most larger states.
For rural areas, the inflation rate was 1.88 pc and it was 1.84 pc for urban areas in Odisha. The all-India CPI inflation in January was 2.75 pc (combined), with rural at 2.73 pc and urban at 2.77 pc.
In the MoSPI data, Odisha’s inflation rate was lower than in most big states including Telangana (4.92 pc), Kerala (3.67 pc), Tamil Nadu (3.36 pc), Rajasthan (3.17 pc), Andhra Pradesh (2.83 pc), Gujarat (2.23 pc), Maharashtra (2.60 pc), Haryana (2.55 pc), Karnataka (2.99 pc) and Bihar (2.48 pc).
Although smaller states and northeastern states registered lower rates in some cases, among populous states, Odisha’s year-on-year rate was on the lower side. However, the inflation rate in December 2025 was -0.99 pc.
Economists and analysts attributed multiple factors to explain why inflation in Odisha remained subdued relative to others. They said across the country, food inflation was modest (around 2.13 pc) in January, which reflects easing prices for staples like garlic, onion and potatoes, which registered sharp negative inflation at the national level.
Similarly, transport inflation remained very low (0.09 pc), dampening the overall CPI and this trend could have benefited states with high rural populations where transport costs form a larger share of household budget. Unlike some states where robust wage growth has accelerated price increases, Odisha’s inflation environment remained at the lower side partly due to conservative fiscal outlays and controlled government sector spending.
Associate professor in Economics at NISER Amarendra Das said Odisha’s reliance on local agricultural production and supply links to neighbouring states with stable commodity prices may have helped cushion sharp food price spikes seen elsewhere.
“CPI in the state has remained close to the lower band of the target in last several months. For consumers this gives a higher purchasing power. However, for producers this is not good. A very lower inflation reflects lower demand too,” he said.
Almost all sectors, Das said, have witnessed a very slow rise in prices. In relative terms this would reflect a higher supply than the demand. Lower inflation can harm the profit expectation of producers and hence impact capital investment and growth, he reasoned.