Telangana records highest retail inflation among major Southern States in August

Telangana recorded 6.27 per cent retail inflation in August, the highest among major Southern States, with rural inflation at 6.79 per cent. The State has remained above 6 per cent for several months after moving sharply from deflation in 2025.

Hyderabad: Telangana recorded the highest retail inflation among the major Southern States and one of the highest rates in the country in August, with its Consumer Price Index (CPI) inflation at 6.27 per cent. Telangana’s inflation was 1.45 percentage points higher than the national average of 4.82 per cent.

According to the latest provisional CPI data released by the National Statistics Office, Telangana’s rural inflation was particularly high at 6.79 per cent, compared with 5.23 per cent nationally. Similarly, urban inflation stood at 5.88 per cent, against the national average of 4.31 per cent. The figures indicated that price pressures were sharper in the State’s rural areas.

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Among States with more than 50 lakh population, Telangana’s 6.27 per cent headline inflation placed it ahead of several major States, including Tamil Nadu (5.92 per cent), Madhya Pradesh (5.55 per cent), Andhra Pradesh (5.53 per cent), Odisha (5.52 per cent), Rajasthan (5.24 per cent) and Karnataka (5.23 per cent).

The August figures also showed the pressure extending across consumption categories at the national level, with food inflation at 5.95 per cent. Telangana’s substantially higher overall inflation puts the State among the more pronounced pockets of price pressure even as the national inflation rate remained below 5 per cent.

The latest figure marks a dramatic turnaround from 2025, when Telangana witnessed rare bouts of sustained deflation, including -0.93 per cent in June, followed by other negative readings during the year. The decline was attributed to falling food and vegetable prices, a favourable base effect and weak rural consumption outside Hyderabad. Economists had warned that prolonged deflation could indicate subdued consumer demand, discourage investment and eventually affect State tax revenues.

The trend changed sharply in 2026. Inflation rose to 5.81 per cent in April, 6.15 per cent in May and 6.36 per cent in June, before easing marginally to 6.32 per cent in July and 6.27 per cent in August. Telangana has remained at the top of the State-wise inflation rankings for several months.

The sharp numerical turnaround also needs to be viewed against the revised CPI series, under which the weights assigned to food and beverages, housing and services were recalibrated. While this partly affects comparisons with the earlier series, the persistence of inflation above 6 per cent points to price pressures that have extended well beyond a single month.

The reversal from deflation to sustained high inflation in little over a year thus presents a new economic challenge for the State, with household purchasing power and rural demand likely to remain key concerns.

Telangana’s consistent retail inflation in 2026-27

April — 5.81 per cent

May —– 6.15 per cent

June —- 6.36 per cent

July —- 6.32 per cent

August — 6.27 per cent