Hyderabad: Tomato prices surged 53% year-on-year in Telangana in June, while coconuts became costlier by 40% and lemons and sweet limes by 32% each, making them among 29 items in the Consumer Price Index (CPI) basket that recorded inflation of 15% or more. Besides kitchen staples and fruits, gold and platinum jewellery prices rose 42%, underscoring the breadth of price pressures across the state.The sharp increase in the prices of everyday essentials partly explains why Telangana has been recording one of the highest retail inflation rates in the country in recent months. Economists point out that the state’s limited horticulture base has also contributed to the rise in vegetable and fruit prices.
CJP Jantar Mantar Protest Updates
Telangana has around 10 lakh acres under horticulture crops, of which vegetables account for barely one lakh acres. As a result, the state depends heavily on supplies from neighbouring states for key kitchen staples, making prices vulnerable to seasonal fluctuations and supply disruptions.The item-wise inflation data forms part of the revised CPI series, under which the National Statistical Office (NSO), under the ministry of statistics and programme implementation (MoSPI), tracks monthly changes in the prices of goods and services consumed by households. The revamped 2024 series has expanded the basket from 299 to 358 items and services, based on consumption patterns captured in the Household Consumption Expenditure Survey (HCES) 2023-24. The new series has also broadened the coverage of services and begun collecting online prices for select goods and services.Among food items in Telangana, ginger registered inflation of 26%, while watermelon, chicken, citrus fruits, dried and dehydrated fruits, and fruit-bearing vegetables all recorded inflation of 23%. Grapes became costlier by 20%, pears by 17% and other fresh fruits by 19%.Cooking oils continued to pinch consumers, with vegetable oil and refined oil recording inflation of 19% and 18%, respectively, while oils and fats as a category saw prices rise by 18%. Coriander, tamarind, betel leaves, palak and other leafy vegetables, lady’s finger and pumpkin all registered inflation of around 15%, while cabbage prices rose 16%.The broad-based rise in prices is likely to weigh on household budgets as several of the affected items — including coriander, ginger, tamarind, leafy vegetables and edible oils — are used almost every day. Families are also facing higher spending on fuel, school and college transport and personal care products.While several items in Telangana recorded inflation far above 15%, the Reserve Bank of India does not prescribe price limits for individual commodities such as tomatoes, edible oils or gold. Under India’s inflation-targeting framework, the RBI is mandated to keep headline retail inflation, measured by the CPI, at 4%, with a tolerance band of 2-6%. Economists say persistent spikes in essential food items nevertheless shape households’ inflation expectations and can influence the central bank’s monetary policy decisions.Outside the kitchen, jewellery and watches recorded inflation of 71%, the highest among the categories tracked by the CPI. Solid fuels become costlier by 35%, while personal care, social protection and miscellaneous goods and services registered inflation of 31%. Cigarettes saw prices rise by 20%, while restaurants and cafés with limited service recorded inflation of 15%.GFXItems recording inflation of 15% and above in June* Jewellery and watches: 71%* Tomato: 53%* Gold and platinum jewellery: 42%* Coconut: 40%* Solid fuels: 35%* Lemon: 32%* Sweet lime: 32%* Personal care, social protection and miscellaneous goods and services: 31%* Ginger: 26%* Citrus fruits: 23%* Dried and dehydrated fruits: 23%* Fruit-bearing vegetables: 23%* Chicken meat: 23%* Watermelon: 23%* Cigarettes: 20%* Grapes: 20%* Vegetable oil: 19%* Other fresh fruits: 19%* Oils and fats: 18%* Refined oil: 18%* Pears: 17%* Cabbage: 16%* Coriander: 15%* Palak and other leafy vegetables: 15%* Lady’s finger: 15%* Pumpkin: 15%* Tamarind: 15%* Betel leaves: 15%* Restaurants and cafés with limited service: 15%How it is measuredRetail inflation is measured through the CPIIt captures changes in prices of goods and services commonly consumed by householdsCompiled every month by NSO, revised 2024 series reflects changing consumption basket of Indian householdsThis includes growing importance of services and online purchases
