In Telangana, inflation has remained the highest among all states since January 2026, reaching 6.15% in May. Factors contributing to this increase include higher fuel taxes, rising rural wages, and a dependence on imported fresh produce, as per a report by SBI Research. State-level consumer inflation data reveals significant regional variations across India.
Among the 36 states/UTs, 12-14 regions have inflation rates surpassing the national average. States like Karnataka, Tamil Nadu, Madhya Pradesh, and Rajasthan continue to experience inflation levels higher than the national average. Notably, Andhra Pradesh, Assam, and Odisha have seen inflation rise by over 2% between January and May 2026, compared to a 1.19% increase at the national level.
The report notes that a majority of states/UTs have experienced inflation rates ranging between 2-4% during the first five months of 2026. In May, India’s Consumer Price Index (CPI) inflation climbed to 3.93% from 3.48% in April, reflecting the impact of increased petrol/diesel prices and a slight LPG shortage.
Transport inflation surged by 176 basis points to 1.8% in May compared to April. Similarly, inflation in Restaurants and accommodation services, which heavily rely on LPG, rose by 154 basis points to 5.7% in May from 4.2% in April. A modest uptick in gold and silver prices contributed to an 80 basis points increase in the personal care division’s inflation rate.
At the item level, silver jewellery accounted for 56 basis points of headline inflation, followed by gold with a 30 basis points contribution, unchanged from the previous month. Global commodity prices, as indicated in the World Bank Pink Sheet, showed higher inflation in silver compared to gold. Petrol’s contribution to inflation rose to 14 basis points, while LPG shortages pushed up prices of cooked meat and snacks.
