NEW DELHI: According to the Economic Survey-2022–23 that Finance Minister Nirmala Sitharaman presented to Parliament on Tuesday, Telangana has the highest inflation rate in the nation.
In comparison to the national average of 6.8%, Telangana experienced a staggering 8.7% inflation rate between April and December 2022. Telangana's rural areas experienced higher inflation, at 9.2%, than its urban areas, at 8.3%. The only rural area with higher inflation than rural Telangana was Mizoram, at 11%.
Telangana saw the second-highest inflation rate in 2017 with a 7.1% rate, only behind Jammu & Kashmir's 7.2%. Inflation was particularly high in Telangana, West Bengal, Maharashtra, Madhya Pradesh, Haryana, and Andhra Pradesh in FY23. According to the document, the main causes of the inflation spike were fuel and apparel.
Food inflation caused by high tomato prices from crop damage and supply disruption from unseasonably heavy rain in states like Telangana, Karnataka, Tamil Nadu, and Andhra Pradesh between April and December 2022 is another driver for the high inflation rate noted. On a national level, food inflation reached its highest point on September 22 at 8.6%. When compared to 135.6% in May, tomato price inflation was 158.4% greater, before levelling out at 13.9% in October.
According to the Economic Survey, the increase in crude prices—which saw the Indian basket break beyond 110 dollars per barrel in May 2022-- and the strengthening of the US dollar to about Rs. 77 per USD are to blame for fuel inflation. The Economic Survey noted that the retail selling prices of gasoline and diesel increased from Rs. 95.41 per litre and Rs. 86.67 per litre, respectively, in March 2022 to Rs. 105.41 per litre and Rs. 96.67 per litre, respectively, on May 21, 2022, and suggests actions like rationalising the Central Excise duty to lower the fuel prices.
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