# The highest inflation rate reported in Telangana

## The highest inflation rate reported in Telangana

The highest inflation rate across the country has been measured in Telangana whereas 14 states including Telangana along with Jammu and Kashmir have faced higher inflation rate than the average inflation rate of the country. Telangana has recorded 8.32 percent inflation and made its place at the top of the inflation chart.

In January when the average inflation rate of the country increased above 6 percent which is the upper limit of the inflation rate set by the policy makers, we have been witnessing a higher inflation rate so far. The lower limit of inflation rate is 2 percent where the upper limit goes to 6 percent.

### Some facts:

In the first seven months of 2022, the average inflation rate of the country measured by the Consumer Price Index is 6.8 percent but we can see the difference between the inflation rate across the country. There are dozens of states which are witnessing a lower inflation rate than the average rate of the country and there are also approximately 12 states where the inflation rate is higher than the upper tolerance limit.

Given the reasons for this disparity, the chief economist of Bank of Baroda described those states which have more rural areas in comparison to the urban areas, the inflation rate is higher than those which have more urban areas. Further he elaborated that because of the higher weightage of food costs in the rural areas is the reason for this increased inflation measured by Consumer Price Index.

West Bengal and Sikkim have also reported a high inflation rate above than 8 percent. These three states Telangana, West Bengal and Sikkim have 8.32%, 8.06%,8.01% inflation rate respectively. Many other states have also seen a spike in the inflation rate except for these 3 states. These states are given below in decreasing order according to the rate of inflation respectively:

• Telangana
• West Bengal
• Sikkim
• Maharashtra
• Haryana
• Assam
• Gujarat
• Jammu & Kashmir
• Rajasthan

There are some states which have a less inflation rate than the average inflation rate of the country. These states are given below in the increasing order according to their inflation rate:

• Kerala
• Panjab
• Delhi
• Karnataka

Whereas a few states measured a very low inflation rate. These states are Manipur, Goa, Meghalaya. They have an inflation rate less than 4 percent.

### Conclusion:

The inflation rate in the country is primarily measured by the Consumer Price Index. The lower limit of this inflation rate is set to 2 percent while the upper limit is fixed to 6 percent. Irrespective of that our country has been witnessing a higher inflation rate than the upper tolerance limit from the starting of 2022. Now this inflation chart shows the ground reality of the inflation in the country.

Q1. In which state the inflation rate is highest?

Ans. Telangana (8.32%).

Q2. The inflation is measured by which index?

Ans. Consumer price index.

Q3. What is the lower and upper limit of inflation rate?

Ans. 2% to 6%.

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