THIRUVANANTHAPURAM: Exceeding the upper threshold of the Reserve Bank of India’s tolerance range of 2-6 per cent, retail inflation in the state reached a new peak of 6.43 per cent in July, primarily driven by the escalation in food prices. While increasing sequentially from 5.25 per cent recorded in June, the consumer-based price index, or retail inflation, was lower than the national average of 7.44 per cent, marking a departure from the trend of the past five months.
Within Kerala, the Consumer Price Indices (CPI) underscored a continuing upward trend in food prices. Specifically, the CPI for the food basket increased from 194 in June to 198.1 in July. This index accounts for the prices of 12 categories of food items, including cereals, pulses, vegetables, fruits, meat, and milk products. The sharp spike in vegetable prices, particularly tomatoes, was identified as a prominent driver behind the substantial hike in food expenses.
The National Statistical Office (NSO) calculates the inflation rate based on six baskets representing groups of goods and services: ‘food and beverages, ‘pan, tobacco, and intoxicants’, ‘clothing and footwear’, ‘housing’, ‘fuel and light’, and ‘miscellaneous’.
The ‘fuel and light’ basket encompasses energy products like LPG, kerosene, and electricity. In July, Kerala’s CPI for this basket was 206.5, while the national figure stood at 186.2.
For the ‘housing’ basket, which is determined based on rental prices in urban areas, Kerala’s index was 181.3, surpassing the national figure of 175.3. Lastly, Kerala’s index for the ‘pan, tobacco, and intoxicants’ basket was 210.4, compared to the countrywide index of 202.