Tomato to gold: Here’s what is driving Telangana’s inflation

Jewellery and watches recorded the steepest inflation among CPI categories in June, at 71 per cent.

Hyderabad: Telangana has recorded one of the sharpest turnarounds in retail inflation in the country, moving from deflation for much of 2025 to 6.36 per cent in June 2026, one of the highest rates among states and well above the national average of 4.38 per cent.

State-level data show Telangana’s inflation stayed in negative territory through much of 2025, touching a low of minus 1.16 per cent in October, before turning positive at 1.77 per cent in December. The following month, the Centre rolled out a revised Consumer Price Index (CPI) series with 2024 as the base year, expanding the basket from 299 to 358 goods and services and recalibrating weights based on the latest household expenditure survey. 

Telangana’s inflation jumped to 4.92 per cent in January and climbed steadily to 6.36 per cent by June.

Jewellery, tomato, coconut lead price surge

Jewellery and watches recorded the steepest inflation among CPI categories in June, at 71 per cent, followed by tomato at 53 per cent, gold and platinum jewellery at 42 per cent, coconut at 40 per cent and solid fuels at 35 per cent. Lemon and sweet lime rose 32 per cent each, while ginger climbed 26 per cent.

Watermelon, chicken, citrus fruits, dried and dehydrated fruits and fruit-bearing vegetables all recorded inflation of 23 per cent and cooking oils continued to pinch households, with vegetable oil up 19 per cent and refined oil up 18 per cent. Everyday staples such as coriander, tamarind, betel leaves, spinach and other leafy vegetables, lady’s finger and pumpkin each rose around 15 per cent, while cabbage was up 16 per cent.

In all, 29 items in the CPI basket recorded inflation of 15 per cent or more in June.

Limited local supply, revised CPI basket blamed

Economists said the revised CPI series may have amplified inflation readings by changing the composition of the consumer basket, though food prices, transport costs and local supply constraints have also played a role. They pointed to Telangana’s narrow horticulture base. The roughly 10 lakh acre under horticulture crops in the state, vegetables account for barely one lakh acres, which leaves it dependent on supplies from neighbouring states and vulnerable to seasonal and supply disruptions.

The revised CPI series, compiled monthly by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation, is based on the Household Consumption Expenditure Survey 2023-24 and has also broadened its coverage of services and begun tracking online prices for select goods and services.

The broad-based price rise is likely to weigh on household budgets, with many of the affected items, including coriander, ginger, tamarind, leafy vegetables and edible oils, consumed almost daily, besides rising spending on fuel, transport and personal care products.