HYDERABAD: Telangana has the highest rate of overall inflation in the country based on the Consumer Price Index (CPI) as per Ministry of Statistics and Programme Implementation.As per the Ministry, Telangana’s inflation rate in October stood at 8.82%, with rural inflation at 9.47% and 8.23% in urban areas. Telangana is followed by Andhra Pradesh, where inflation was at 7.93%.
Among the states, Delhi logged the lowest inflation rate at 2.99%. The data for inflation is collected from selected urban markets and villages through personal visits by field staff of field operations division of the National Statistics Office.
CPI numbers are considered based on prices of cereals and products, meat and fish, egg, milk and products, oils and fats, fruits, vegetables, pulses, sugar and confectionery, spices, food and beverages, non-alcoholic beverages, prepared meals, snacks, sweets, clothing and footwear, fuel and light, housing, health, transport and communication, education and personal care.
As per weights of different commodities, the key driver of inflation in urban areas is food and beverages category with 36.29%, followed by housing with 21%. Clothing and footwear have seen a surge in prices over the last few months as the economy has picked up to almost pre-pandemic levels.
According to economists, after Covid-19, housing has been costlier in Hyderabad and the affordability has gone for a toss where a flat on the outskirts of the city costs Rs 5,000 per sq.ft. Transport charges have also increased in RTC buses and travelling for 8 km costs Rs 20 in ordinary services.
Mohan Guruswamy, a policy analyst who studies economics, said that retail prices are high in the State and public spending has also increased in the same way. This apart, the cost of beverages has also been high.
With regard to rates of essential commodities in the State as per Directorate of Economics and Statistics, Telangana, the cost of fine rice has increased to Rs 30.14 kg this month from Rs 26.27 per kg in November 2021. Similarly, groundnut oil rose by Rs 15 per litre i.e, from Rs 157.31 to Rs 172.64.