Chhattisgarh reins in inflation at reasonable rates among poll-bound states

Job creation can influence voters powerfully in a long-term process. But when elections are close at hand, it is prices, particularly those of food, that achieve paramount importance. However, there are various components and time lengths in retail inflation, and it is tough to say which would affect the electorate’s mood.

As the election process has started in five states -- Chhattisgarh, Mizoram, Madhya Pradesh, Rajasthan, and Telangana -- price pressures were higher in two of them, Rajasthan and Telangana, than the national average in September.

However, if the first six months of this financial year are taken into account, it was high inflation in Mizoram too though a bit less than the national average.

While the retail inflation rate fell below 6 per cent at 5.02 per cent in September at all-India level, Rajasthan and Telangana still had the rate at 6.53 per cent and 6.05 per cent, respectively. Mizoram had it at 4.47 per cent. Madhya Pradesh witnessed 3.67 per cent, and Chhattisgarh managed to control it at just 1.98 per cent.

In the first six months of this financial year, Rajasthan and Telangana had higher inflation than 6 per cent -- at 6.67 per cent and 6.52 per cent, respectively. (The all-India average was below 6 per cent at 5.53 per cent.) Mizoram was close at 5.47 per cent. Madhya Pradesh had it at 4.2 per cent. Chhattisgarh again checked it at just 2.67 per cent.

If food inflation is considered, none of the five states had a higher inflation rate than the national average in September. However, Rajasthan’s at 6.53 per cent was close to the 6.56 per cent at all-India level. Telangana had 5.97 per cent, while it stood at 4.47 per cent in Mizoram.

On the other hand, Madhya Pradesh saw the food inflation rate at 3.67 per cent in the month. For Chhattisgarh it was 1.98 per cent.

However, if one adds beverages to food items, the inflation rate in Madhya Pradesh becomes 7.36 per cent in September against 6.30 per cent all-India. Telangana and Rajasthan saw the food and beverages inflation rate at 8.27 and 6.45 per cent, respectively. Mizoram had it at 5.64 per cent. Chhattisgarh’s was 2.33 per cent.

In 2022-23, except Chhattisgarh, the rest had a higher retail inflation rate than all-India. It was as high as 8.61 per cent in Telangana compared to 6.66 per cent all-India. So Telangana had high inflation the previous financial year, in the first six months of 2023-24, and in September. In fact, the state has had high inflation since 2020-21, when the pandemic hit.

Rajasthan too had high inflation in 2022-23 at 6.92 per cent, then during the first six months of this financial year, and in September, too, as cited above. However, it did not have too high an inflation rate in 2021-22 and 2020-21. It had higher inflation than the national average in 2019-20 but at 5.31 per cent.

Madhya Pradesh had high inflation from 2020-21 to 2022-23. So was it with Mizoram. In fact, it faced a rate as high as 9.53 per cent during Covid-hit 2020-21. Chhattisgarh had a lower inflation rate than the four other states except the Covid-struck 2020-21, when it suffered the rate of price rise at 7.43 per cent.