Srinagar: While national inflation level has eased, Jammu and Kashmir’s inflation rate as per consumer price index (CPI) for the month of July is 7.81 percent, highest among all states, union territories and higher than the national inflation rate.
Jammu and Kashmir’s inflation has witnessed an increase despite the fact that national retail inflation eased to 5.59 per cent in July mainly due to softening food prices, according to official data released on Thursday. The Consumer Price Index (CPI) based inflation was 6.26 per cent in June and 6.73 per cent in July 2020.
However in Jammu and Kashmir, the inflation rate in June was 7.42 % which increased to 7.81 per cent, which implies that the living cost in J&K is higher than rest of the India.
However in Jammu and Kashmir despite slowing national inflation rate, there is no breather for inhabitants of the Union Territory. Major factors attributing to the rising costs in the state is heavy dependence on imports from other places. J&K on an average imports goods and food items worth Rs 40,000 crore annually from other states. The ever increasing petroleum prices have become a major reason for the escalating inflation in the state, given the heavy transportation costs and tough terrain. With around 52 percent state and central taxes on fuel, the prices of petrol and diesel have shot up.
“Higher inflation rate in Jammu and Kashmir is a cause of concern for all of us, as it burdens the common man’s pocket and also reduces savings. Therefore the need of the hour is that government must take proactive measures to contain inflation rate in J&K which is higher than the national average rate,” said Muhammad Ismail, a trader.
Lower food prices eased India's July retail inflation on a sequential basis.
Data furnished by the National Statistical Office (NSO) showed that the Consumer Price Index (CPI) slipped to 5.59 per cent last month from 6.26 per cent in June.
Region wise, the CPI Urban was at 5.82 per cent last month from 6.37 per cent in June, and the CPI Rural at 5.49 per cent in June from 6.16 per cent in June.
As per the NSO data, the Consumer Food Price Index fell to 3.96 per cent last month from 5.15 per cent in June. The CFPI readings measure the changes in retail prices of food products.
Notably, the macro-economic data assumes significance as it brings retail inflation mark in the range of the Reserve Bank of India's set target of 2-6 per cent for CPI inflation.
The declining retail inflation rate reduces the chance of the RBI to further loosen up the monetary policy.