THIRUVANANTHAPURAM: Kerala recorded the highest retail inflation in the country for the second consecutive month in February. The state’s inflation rate quickened to 7.31% from 6.76% in January even as the national average fell to a seven-month low of 3.6%.

Kerala was followed by Chhattisgarh (4.9%), Karnataka (4.5%), Bihar (4.5%) and Jammu and Kashmir (4.3%). The state’s inflation rate has breached the Reserve Bank of India’s tolerance band of 2-6% since October 2024. People in rural areas were the most hit due to the price rise. Inflation rate for rural Kerala was 8.01% and urban areas 5.94%.

Rise in food, personal care, educational and health expenses drove Kerala’s inflation rate up, stated the data released by the National Statistical Office (NSO). The NSO calculates inflation rate based on the prices of six baskets (groups of goods and services). They are ‘food and beverages’, ‘pan, tobacco and intoxicants’, ‘clothing and footwear’, ‘housing’, ‘fuel and light’ and ‘miscellaneous’.

The ‘food and beverages’ basket had an 8.9% increase in February 2025 when compared to the same month in the previous year. It was followed by the ‘miscellaneous’ basket that recorded an 8.7% increase. The ‘housing’ basket, determined on the basis of rental prices in urban areas, increased by 1.8%, ‘clothing and footwear’ by 1.5% and ‘pan, tobacco and intoxicants’ by 1.5%.

“In Kerala, vegetables, fruits and meat contribute to the increase in the ‘food and beverages’ basket. An effective Public Distribution System keeps cereal prices under control,” says Prof M Parameswaran of the Centre for Development Studies.

“The ‘miscellaneous’ basket includes different products and services like health, education, transport, personal care etc. The group of items was the second highest factor that pushed the general inflation rate up,” he added.