Regional Inflation Disparities and Industrial Growth Paint Complex Picture for India's Economy
In June 2024, inflation in 12 out of 22 Indian states exceeded the national average of 5.1%, with Odisha hitting a high of 7.22%. Concurrently, industrial production surged to a seven-month high. The urban-rural divide persisted, driven by rising food prices. Global trends may influence future policy actions.
![Regional Inflation Disparities and Industrial Growth Paint Complex Picture for India's Economy](https://devdiscourse.blob.core.windows.net/devnews/13_07_2024_13_31_26_3158248.jpg)
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- India
India's inflation landscape exhibited significant regional disparities in June 2024, with 12 out of 22 states reporting inflation rates higher than the national average of 5.1%, according to SBI research. Odisha led with an inflation rate of 7.22%, closely followed by Bihar's 6.37% and Karnataka's 5.98%. This divergence underscores regional economic inequalities as the nation faces escalating prices.
Meanwhile, the Index of Industrial Production (IIP) hit a seven-month high of 5.9% in May, signaling strong growth in mining (5.9%), manufacturing (4.6%), and a substantial uptick in electricity production (13.7%). These contrasting trends highlight the complex interplay between inflation and industrial activity across India.
The urban-rural inflation divide persisted, with rural inflation climbing to 5.66% and urban inflation at 4.39% in June. This gap is attributed to higher food prices and a heavier reliance on food items in rural consumption (54.2%) compared to urban areas (36.3%).
(With inputs from agencies.)
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