Inflation is highest in Odisha at 7.22% followed by Bihar and Karnataka: SBI research
inflation landscape exhibited spatial variability in June 2024, with 12 out of 22 states reporting inflation rates exceeding the national average of 5.1 per cent, according to SBI research.
Odisha recorded the highest inflation at 7.22 per cent, followed closely by Bihar at 6.37 per cent and Karnataka at 5.98 per cent. This divergence highlights regional economic disparities as the country grapples with rising prices.
Concurrently, the Index of Industrial Production (IIP) surged to a seven-month high of 5.9 per cent in May, reflecting robust growth in mining (5.9 per cent), manufacturing (4.6 per cent), and a remarkable increase in electricity production (13.7 per cent).
These contrasting trends underscore the complex interplay between inflation and industrial performance across India.
The urban-rural inflation divide continued, with rural inflation increasing to 5.66 per cent and urban inflation rising to 4.39 per cent in June.
This persistent gap is driven by higher food prices and a greater weight of food items in the rural consumption basket (54.2 per cent) compared to urban areas (36.3 per cent).
The primary contributors to the inflation surge in June were food items, particularly vegetables, which saw a dramatic price increase of 29.32 per cent.
Pulses followed with a 16.07 per cent rise, while cereals contributed an 8.75 per cent inflation rate. These increases are largely attributed to climatic factors affecting vegetable and protein-based item prices.
Despite these spikes, there is no widespread
