Retail inflation at 2-yr low, but wide variations at state levels

Ahead of general elections, CPI-based inflation fell to a two-year low of 8.10% in February

It was said high inflation was one of the primary factors behind the defeat of the Congress in the four state Assembly elections last year-- in Rajasthan, Delhi, Madhya Pradesh and Chhattisgarh.

Ahead of the general elections this year, Consumer Price Index-based inflation fell to a two-year low of 8.10% in February.

At a state-level, however, inflation isn't uniform; it ranges from 4.8% to 15.48%. In the case of 15 states, which together account for about half the total Lok Sabha seats (261 out of 543), inflation was higher than the national average. These states include Uttar Pradesh (80 seats), Bihar (40), West Bengal (42), Odisha (21) and Kerala (20).

 

In the case of northeastern states, too, inflation was the highest in Tripura, followed by Mizoram, Nagaland and Assam. The northeastern state of Manipur recorded the lowest inflation in the country.

In Gujarat, the home state of the Bharatiya Janata Party's prime ministerial candidate Narendra Modi, inflation was lower than the national average. In Maharashtra, Tamil Nadu and Punjab, too, inflation was lower than the national average.

Experts say the factors governing inflation at the state level include the development pattern in the state concerned, infrastructure, the consumption pattern of various items, whether the state has a rural or urban set-up and whether it is food-producing state or not.