Rising has forced a relook into Micro Economics of states, particularly Telangana that clocked the highest rural inflation. Radhika Pandey, consultant economist with National Institute of PUBLIC FINANCE and Policy (Delhi), says though the current economic scenario is not alarming, inflation rates in states differ due to varied reasons.
For stability, a bandwidth of a 2-6% inflation rate is good. This, however, varies with time for many reasons. Indias inflation rate is influenced by fuel prices. Inflation is understood as a consistent spurt in prices and the poor cannot afford a price rise, so its critical to keep inflation levels within the desired ban dwidth. Going by GST collections and GDP figures, India is relatively safe. Also, we are not an export-driven economy and inflation rates were brought down between February and March.
As per data, Telanganas vegetable inflation in rural areas between April and October is very high, hovering around 20%. In the same p eriod, the corresponding figure (rural vegetable inflation) for the country was just 6%. Agriculturists say price benefits not being passed on to consumers or cultivation not meeting demand.