State records 9.4 pc inflation rate
Source: Chronicle News Service

Imphal, January 14 2025: The inflation data for December 2024 has revealed a mixed economic landscape across India.

While the national inflation rate eased to 5.22 per cent from November's 5.48 percent, conflict-stricken Manipur stood out as the state with the highest inflation rate, recording a staggering 9.4 per cent.

This figure is nearly double the national average and far exceeds the Reserve Bank of India's (RBI) target threshold of 4 percent inflation.

According to a report published by Free Press Journal, Manipur's record-high inflation rate reflects the ongoing challenges faced by the state, which has been embroiled in violent ethnic tensions between the Kuki and Meetei communities since 2023.The conflict has severely disrupted economic activities, supply chains, and public services, contributing to the state's sky-high consumer price index (CPI) levels.

This inflation rate underscores the impact of prolonged instability on the region's economy.

Other northern states also recorded inflation rates above the national average.

Uttar Pradesh posted an inflation rate of 6.26 per cent, followed by Bihar at 7.36 per cent and Haryana at 6.08 per cent.

These figures highlight regional disparities and the persistent inflationary pressures in northern India.

In contrast, southern Indian states recorded significantly lower inflation rates, with an average of 5 percent, below the national average.

Kerala had the highest inflation rate among the southern states at 6.36 per cent, while Telangana reported one of the lowest rates in the country at 3.14 per cent.

On a broader scale, rural areas continued to experience higher inflation compared to urban areas, although both saw a decline from November levels.

Rural inflation dropped to 5.76 per cent from 5.95 per cent, while urban inflation decreased to 4.58 per cent from 4.89 per cent.

While the national inflation rate continues to hover around the 5 per cent mark, as projected by analysts, the stark disparities across states highlight the need for targeted policy interventions.

For Manipur, addressing the underlying causes of conflict and restoring economic stability will be critical to managing the state's inflationary pressures.

Meanwhile, the RBI's focus on maintaining inflation within its target range remains vital to ensuring economic stability across the country, the report added.

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