Hyderabad: Telangana has witnessed a sharp turnaround in retail inflation over the past year, moving from deflation in much of 2025 to one of the highest inflation rates in the country by June 2026, aided in part by the rollout of the revised Consumer Price Index (CPI) series.State-level data show Telangana’s inflation was in negative territory for most of 2025, touching minus 1.16% in Oct. The prolonged spell of low inflation ended in December, when the rate rose to 1.77%.A month later, the Centre rolled out the revised CPI series with 2024 as the base year, replacing the earlier basket to better reflect changing consumption patterns. The new series, compiled by the National Statistical Office, expanded the CPI basket from 299 to 358 goods and services and recalibrated their weights based on the latest household expenditure survey.
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Following the revision, Telangana’s inflation jumped to 4.92% in Jan 2026 and continued to climb, reaching 6.36% in June, well above the national average of 4.38%.The increase coincided with a surge in prices of household items. Tomato prices rose 53% in June, coconut 40% and lemon and sweet lime 32% each. As many as 29 items in the CPI basket recorded inflation of 15% or more, including coriander, ginger, edible oils, fruits and vegetables. Gold and platinum jewellery prices rose 42%.Economists say the revised CPI series may have amplified inflation readings by changing the composition of the consumer basket, though food prices, transport costs and local supply constraints have also played a role. Telangana’s dependence on imports from neighbouring states for a significant share of its vegetables has added to price pressures.While the RBI does not prescribe inflation limits for individual items, it aims to keep headline retail inflation at 4%, with a tolerance band of 2-6%.
