Some states feel the pinch of inflation more

NEW DELHI: At least four states recorded 9% inflation in April with West Bengal and Madhya Pradesh topping the charts as price pressures scorched household budgets across the country.
Data released by the National Statistical Office (NSO) on Thursday showed inflation, as measured by the consumer price index, soared to a near 8-year high of 7.8% on the back of surging food and fuel prices. Some states are witnessing heightened price pressures as supplies get disrupted due to the war in Ukraine.
Haryana and Telangana were the other two states that witnessed 9% inflation, while seven states had 8% or more inflation, highlighting the intense pressure triggered by the sharp surge in the inflation rate. But two states – Tamil Nadu and Kerala – had inflation rates little over 5%.

“One reason for the high rates could be the higher penetration of the rural economy in these states and the second is that fuel duties vary across states which could have an impact,” said D K Joshi, chief economist at ratings agency Crisil, while calling for a detailed analysis of the divergence of inflation rates across the country. The retail inflation data had shown that rural inflation had outpaced urban, rising by 8.4% in April, while urban inflation was at 7.1%.
For households, rising inflationary pressure has heaped misery. “The monthly expenses have gone up like anything. Be it grocery, fish, vegetables, fuel and school fees. There has been at least 20% increase in monthly expenses in the last one year. Like in fuel, I spend at least Rs 2,000 more per month, so do at grocery and some other things,” said Malay Biswas, a senior financial services sector executive in Kolkata.
Families are being forced to adjust their budgets to the new realities and savings are taking a knock. “Price rise is not new but the way prices have risen in the past few years is phenomenal. I have two daughters – one studies law in Ahmedabad and the younger one, medicine in Dewas. A lot of money has to be spent on their education. Then, you have loans and EMIs. You can manage only if you save enough but the relentless price rise in grocery, petrol, cooking gas, food and just about everything has drastically reduced our savings,” said Santosh Verma, an advocate in Bhopal.
“Besides, price rise would be cushioned if income also rises proportionately but in the past couple of years, income has been badly hit due to the corona pandemic,” said Verma.
(With inputs from Udit Prasanna Mukherjee in Kolkata and Ashutosh Shukla in Bhopal)