India's retail inflation hit a 99-month low in September. However, some states saw higher price increases. Kerala experienced a surge driven by gold prices. Jammu & Kashmir and Punjab faced rising costs due to fuel and light categories. Rural areas in several states also recorded more inflation than urban centers. This data comes from the Statistics Ministry.
India’s retail inflation eased to a 99-month low of 1.5% in September and averaged 2.2% in the first half of FY26, according to data released by the Statistics Ministry. Despite the sharp moderation in the first half, some states experienced higher price pressures than the national average, led by Kerala, where soaring gold prices drove up costs.
Rural areas recorded higher inflation than urban regions in several states, including Kerala, Jammu & Kashmir, and Chhattisgarh. Anoushka Sawhney takes a closer look:
Nine states recorded higher inflation than the national average in H1 FY26.
Kerala’s inflation surge was driven by gold, with personal care and effects recording 31.8% inflation in the first half.
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In Jammu & Kashmir and Punjab, fuel and light categories pushed inflation higher, averaging 10.5% and 13.3%, respectively.
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