Deflation rings alarm bells in Telangana for third consecutive month
Telangana recorded deflation for the third consecutive month in November, remaining in the negative zone for five of the last six months. Economists warned that repeated deflation, while easing prices, may signal weak consumption and slowing economic activity.
Hyderabad: Telangana recorded deflation for the third consecutive month at a rate of 0.1 per cent in November, raising concerns over weak consumption and economic stability. Though the State was among those witnessing falling retail prices, its continued presence in the negative zone for five of the last six months pointed to a worrying trend rather than offering comfort.
According to the latest Consumer Price Index (CPI) data released by the Ministry of Statistics and Programme Implementation (MoSPI) for November 2025, India’s national retail inflation stood at 0.71 per cent, while the Consumer Food Price Index (CFPI) recorded a deflationary figure of minus 3.91 per cent. States such as Bihar (minus 1.67 per cent), Odisha (minus 1.29 per cent), Uttar Pradesh and Madhya Pradesh (minus 1.06 per cent each) also saw sharper deflation.
More concerning is the broader trend. Union government data indicated that Telangana has entered deflation multiple times this fiscal year, making it an outlier at the national level. Inflation fell to minus 0.93 per cent in June and minus 0.44 per cent in July, briefly recovered to 0.94 per cent in August, before slipping again into deflation in September at minus 0.15 per cent. In October, the State reportedly recorded minus 1.16 per cent inflation, well below the national average.
Economists cautioned that recurring deflation is a double-edged situation. While it may ease household expenses for a short period, prolonged price decline often points to weak consumption, stressed incomes, lower purchasing power, poor demand and slowing economic activity. Sustained deflation could hurt investment, job creation and revenue mobilisation, affecting overall economic momentum.
