Wed Sep 17 11:04:51 UTC 2025: **Summary:**

Kerala is experiencing the highest retail inflation rate among major Indian states at 9.04% in August 2025, significantly higher than the national average of 2.07%. Finance Minister K.N. Balagopal attributes this to the high consumption and prices of gold, silver, and oils/fats in the state. The government is using its public distribution system (Supplyco and Consumerfed) and has spent ₹273.8 crore on market intervention to combat the price surge.

**News Article:**

**Kerala Grapples with Sky-High Inflation, Tops National List for Seventh Month**

**Thiruvananthapuram, September 17, 2025** – Kerala is facing a major economic challenge, recording the highest retail inflation rate among major Indian states for the seventh consecutive month. The latest figures for August 2025 reveal a staggering 9.04% inflation rate, a stark contrast to the national average of 2.07%, according to data released by the Ministry of Statistics and Programme Implementation.

Finance Minister K.N. Balagopal addressed the State Assembly on Wednesday, attributing the high inflation to the increased prices and consumption of gold, silver, and oils/fats within the state. These commodities, categorized under “Food and Beverages” and “Miscellaneous” groups, significantly influence Kerala’s Consumer Price Index (CPI). Rural inflation in Kerala reached 10.05% in August, while urban areas saw a rate of 7.19%.

Opposition MLAs from the United Democratic Front (UDF) grilled the government on its strategy to address the persistent inflation crisis.

In response, Minister Balagopal outlined the government’s interventions through its public distribution system, utilizing the Kerala State Civil Supplies Corporation (Supplyco) and the Kerala State Co-operative Consumer’s Federation (Consumerfed) to manage prices. This year, the government has already invested ₹273.8 crore in market intervention efforts.

Whether these measures will be enough to curb the soaring inflation and alleviate the burden on Kerala’s consumers remains to be seen. The situation continues to be closely monitored by economists and policymakers.

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