It stated that labor migration from low-income states to high-income states in search of employment opportunities is contributing to higher inflation in wealthier states. This is reflected in food inflation trends across high, middle, and low-income states, indicating that higher purchasing power is fueling inflation, as stated by India라이브 바카라 largest lender.
The report highlighted that retail prices for items such as vegetables, cereals, and most pulses are rising faster in southern states compared to other regions. It noted that the Northeast and Western regions have experienced lower inflation rates, while the Southern and Eastern regions have seen higher inflation.
According to the analysis, inflation in the Northeast decreased by 3.4 per cent in the post-pandemic period (FY21 to FY25), while the Southern region saw a more modest decline of 2.6 per cent.
Higher Taxes In South
The report suggests that higher taxes on petrol/diesel, liquor, and increased registration charges for automobiles and flats in Southern states could be driving inflation in the region.
Southern states account for the largest share—30 per cent—of sales tax collection, followed by the Northern region, the paper noted.
Stating that India라이브 바카라 CPI inflation moderated to 7-month low of 3.6 per cent in Feb’25 due to easing in food and vegetable prices, it said as per State-wise data, inflation in bigger states continued to outstrip the all-India inflation rate of the same month.
“Among the States, Kerala clocked the highest inflation rate of 7.3 per cent in Feb, followed by Chhattisgarh 4. 9 per cent,” it said.
