With inflation consistently high, Centre asks Odisha to take action

BHUBANESWAR: Despite retail inflation in the country recording a five-month low in January owing to falling food prices, Odisha continues to be among the top three states making headlines for high inflation for over a year now.

Meanwhile, neighbouring states like Jharkhand, Telangana and West Bengal have the lowest inflation rate.

According to the data released by the Ministry of Statistics and Programme Implementation, the retail inflation in Odisha was the second highest at 6.05 per cent last month after Kerala’s 6.76 per cent. Rural inflation was higher than the urban with 6.79 per cent and 4.07 per cent respectively.

While the combined inflation rate was 6.96 per cent in December, it was 6.78 per cent in November. The rate was the third highest in Odisha after Chhattisgarh (7.63 per cent and 8.39 per cent) and Bihar (7.36 per cent and 7.55 per cent).

Despite overall cooling trend, Odisha has consistently recorded inflation above 7 per cent for more than eight months between November 2023 and October 2024. The rate had shot up from one of the lowest 3.75 per cent in June 2023 to 8.73 per cent in December 2023. Surprisingly, the urban inflation rate in June 2023 was higher at 5.61 per cent than the rural rate at 3.02 per cent.

However, the higher inflation in the state last month has been attributed to the rising price of essential commodities. The inflation rate of oil and fats was the highest at 15.64 per cent, followed by fruits 12.22 per cent, vegetables 11.35 per cent and personal care 10.58 per cent.

Concerned over the situation, Union secretary of Statistics and Programme Implementation Saurabh Garg has advised the state government to take remedial actions. Citing November figures, Garg pointed out that Odisha experienced one of the highest year-on-year inflation rates among all major states. Some of the sub-groups exhibiting higher inflation are vegetables (30.59 per cent), oil and fats (17.6 per cent), cereal products (9.73 per cent) and fruits (8.86 per cent).

Considering the potential impact on the state’s economy and in turn on the country’s economic and social progress, the Union secretary has urged chief secretary Manoj Ahuja to look into the matter and take immediate steps for easing inflation.

Economists attributed the overall rise in retail inflation to food price volatility, supply chain bottlenecks and structural economic factors. They said Odisha’s economy relies heavily on mining and heavy industries, which do not necessarily translate into stable consumer prices.

Secretary of Odisha Economics Association Amarendra Das said the prices of staple vegetables such as potatoes, tomatoes, and onions remained elevated for a long period and the state faces disruptions in food supply chains due to logistical issues.

UPWARD GRAPH

Retail inflation in Odisha was the 2nd highest at 6.05 pc last month

Rural inflation rate was higher than urban with 6.79 pc and 4.07 pc respectively

Odisha recorded inflation above 7 pc for over 8 months during Nov’23- Oct’24

High inflation last month attributed to rising price of essential commodities