Retail Inflation in Jammu and Kashmir Stands at 2.26% in December
In December, retail inflation in Jammu and Kashmir was reported at 2.26%, while the all-India Consumer Price Index (CPI) inflation rose to 1.33%, driven primarily by an increase in food prices, according to official data.
Despite the slight increase, inflation in J&K remained below the Reserve Bank of India’s lower tolerance level, providing relief to consumers amidst seasonal price pressures. Nationally, headline inflation had decreased to 0.71% in November before climbing again in December, following a rate of 1.44% in September.
The National Statistics Office (NSO) released data showing that food inflation at the national level remained in the negative zone for the seventh consecutive month, although it rose to (-) 2.71% in December from (-) 3.91% in November.
The uptick in headline inflation was attributed to higher prices of personal care products, vegetables, meat, fish, eggs, spices, pulses, and related products during the month, as per the NSO.
Urban Areas Record Higher Inflation Than Rural Regions
Urban areas continued to experience higher inflation compared to rural regions, with urban inflation at 2.03% as opposed to 0.76% in rural India. Economists suggest that this trend reflects stronger demand and price rigidity in urban markets.
At the national level, retail inflation has remained below the RBI’s lower tolerance band of 2% for the fourth consecutive month. The central bank’s mandate is to maintain inflation at 4%, with a margin of 2% on either side.
Among major states, Kerala reported the highest inflation at 9.49%, followed by Karnataka (2.99%), Andhra Pradesh (2.71%), Tamil Nadu (2.67%), and J&K (2.26%). In contrast, retail inflation was negative in Assam, Bihar, Haryana, Madhya Pradesh, Odisha, and Uttar Pradesh.
Introduction of a New CPI Series with Base Year 2024
December’s data marks the final inflation reading under the current CPI series with a base year of 2012. Starting in January, inflation will be calculated under a new CPI series with a base year of 2024 = 100, which is expected to bring significant changes to coverage, item baskets, weights, and methodology.
The revised series, set to be released in February, aims to enhance the representativeness and accuracy of inflation measurement after more than a decade.
