KOCHI: Retail prices of essential food items in Kerala have traced a clear upward curve over the past decade, with sharper spikes in recent years across staples such as rice, sugar, edible oils and eggs, data from the state’s department of economics and statistics show.
Between 2012 and 2025, most essentials have logged sustained increase, ranging from about 25% to over 100%, highlighting persistent inflationary pressure. While recent months indicate some stabilisation or mild corrections after peak levels, prices largely remain elevated.
Staples tell the story starkly. Matta rice prices have nearly doubled over the period, with a pronounced surge after 2021, while other varieties show a similar post-2020 climb. Edible oils recorded some of the steepest rises, particularly coconut oil, even as prices eased slightly after recent highs. Sugar has been on an upward trend since 2022, and egg prices have steadily climbed, too.
The broader pattern reflects a mix of rising input costs, supply constraints and inflation, compounded by Kerala’s structural dependence on imports of essential food items. As a result, even when short-term corrections emerge, households continue to face sustained pressure from elevated food prices.
Overall, while some commodities show signs of short-term stabilisation or correction after recent spikes, the broader trend points to persistent inflation in essential food items, continuing to strain household budgets across Kerala.
EXPERT TAKE
P S Renjith, Gulati Institute of Finance and Taxation
Kerala’s heavy dependence on imported food commodities has made its consumption economy vulnerable to external shocks. What began during the pandemic as a supply-chain disruption has evolved into a persistent and broad-based food inflation crisis affecting cereals, pulses, edible oils, vegetables, spices, milk and other essential items. Kerala’s rising cost of living is no longer driven by temporary seasonal fluctuations alone, but by deeper structural factors, including import dependence, climate variability, rising transport and input costs and supply-chain fragility. Together, the two studies underline the urgent need for stronger local production systems, improved market intervention mechanisms and periodic revision of welfare support to protect household purchasing power and nutritional security.
Note by dept of economics & statistics
Retail prices have a direct and immediate impact on the daily lives of consumers, influencing purchasing decisions, household budgets, savings and overall financial well-being. Every household depends on retail markets for essential goods and changes in prices directly affect affordability and living standards. Recognising this, the department systematically collects retail price data to monitor and analyse price movements over time. To ensure accuracy and consistency, prices are collected for the same variety and quality of each commodity from fixed retail outlets during peak market transaction hours. The data reflect the actual prices paid by consumers, thereby providing a realistic picture of prevailing market conditions. Retail prices of essential commodities are collected from all 14 districts of Kerala on every working day through two structured schedules. (Excerpt)
Dr M P Jayesh, department of economics, CHRIST University, BYC (B’luru)
When we compare the rise in prices of essential commodities with the nominal wage growth for casual labourers, the former has outpaced the latter. In 2012, average daily wages for casual workers ranged from J200 to J250 in rural Kerala and J250 to J300 in urban areas. According to PLFS data, nominal wages have since risen to J750-800 in rural areas and J800-950 in urban areas: a 3 to 3.5-fold increase. However, the cost of an essential monthly basket has gone up 3 to 4 times, driven mainly by sharp increases in coconut oil, vegetables and fish prices. In other words, an average worker needed 16 to 18 days of work in 2012 to feed his family. By 2026, that has risen to 18 to 22 days.