Retail inflation in Punjab hits six-month high at 5.21%

Time of India

5 hours ago

Chandigarh: Retail inflation in Punjab soared to 5.21% in May, marking the highest level in the past six month and significantly exceeding the Reserve Bank of India's (RBI) medium-term target of 4%.
The rise in prices has hit rural households harder, with residents in these areas spending more on daily necessities than their urban counterparts.
This sharp uptick in inflation stands in stark contrast to the national trend, where retail inflation eased to 2.82% — the lowest since Feb 2019. In neighbouring states, the situation was markedly better: Haryana recorded an inflation rate of 3.67% and Himachal Pradesh 2.89%.
Experts attribute Punjab's rising inflation to sustained increases in the prices of essential goods and services, particularly housing, food and beverages, clothing and footwear, and fuel and lighting. These categories have seen consistent price hikes across both rural and urban regions of the state.
Nationally, consumer inflation moderated to 2.82% in May, largely due to a decline in food prices, with vegetable prices dropping by 13.7% and pulses getting cheaper by 8.2%.
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While prices of spices, meat and fish also eased, this was partially offset by continued inflation in fruits and personal care items.
Inflation, which reflects the rate at which prices for goods and services rise over time, directly affects consumers' purchasing power. In the absence of proportionate income growth, rising costs make it increasingly difficult for households to sustain their standard of living.
According to data compiled by the National Statistics Office (NSO), under the Union ministry of statistics and programme implementation, Punjab recorded the second-highest inflation rate among Indian states in May. The data, collected through field surveys in 1,114 urban markets and 1,181 villages nationwide, indicated that rural Punjab experienced an inflation rate of 5.27%, compared to 5.05% in urban areas.
The general consumer price index for Punjab rose from 185.6 in April to 187.8 in May. In rural Punjab, the consumer price index climbed from 189.8 to 191.7, while urban went from 180.5 to 182.9.
The state saw a steady rise in inflation over recent months: 4.28% in Jan, 3.55% in Feb, 3.65% in March, and 4.09% in April — culminating in the sharp jump to 5.21% in May. Kerala topped the national chart with the highest inflation rate at 6.46%, while Jammu and Kashmir recorded 4.55% and Uttarakhand 3.47%.
Experts caution that consumer price index inflation may climb further in the final quarter of the current financial year. At the national level, the average CPI inflation for financial year 2026 is projected to be in the range of 3.3% to 3.5%, while the Reserve Bank of India (RBI) estimates it slightly higher at 3.7%, compared to the financial 2025 average of 4.6%.
STATE | JAN | FEB | MARCH | APRIL | MAY
Punjab | 4.28 | 3.55 | 3.65 | 4.09 | 5.21
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