Why Is Kerala’s Inflation Still High in April 2025 While India Sees a Cooldown?

India's inflation cooled to a six-year low of 3.16% in April 2025, driven by a sharp drop in food prices. However, Kerala bucked the trend, recording the highest inflation among major states at 5.94%, mainly due to rural price pressures.

India’s inflation cooled significantly in April 2025, offering much-needed relief to consumers and policymakers alike. The headline Consumer Price Index (CPI) stood at 3.16% year-on-year, down from 3.34% in March. This marks the lowest inflation rate since July 2019, signalling continued price stability across the country.

Food Inflation Hits Lowest in Over 3 Years

A key driver behind this moderation was the steep drop in food inflation, which fell to 1.78% in April, from 2.69% a month earlier. This is the lowest food inflation rate since October 2021. Prices of essential food items such as vegetables, pulses, fruits, and cereals saw notable declines. In rural areas, food inflation was at 1.85%, while urban India recorded 1.64%. Month-on-month, food prices dipped by 0.15%, indicating mild deflationary pressure in key food categories.

Mixed Trends in Other Inflation Categories

While food prices fell, some categories saw mild increases. Transport and communication inflation rose to 3.73% (from 3.36%), and fuel and light inflation jumped to 2.92%- a significant increase from 1.42% in March. On the other hand, housing, health, and education inflation remained largely stable.

Kerala Reports the Highest Inflation Among Major States

Kerala stood out in April 2025 by recording the highest year-on-year inflation among major states at 5.94%, defying the broader national trend of easing prices. Rural areas in Kerala were particularly affected, with inflation climbing to 6.46%, compared to 4.91% in urban regions, indicating potential localised supply-side constraints or structural cost challenges. Other states with elevated inflation included Karnataka (4.26%), Jammu & Kashmir (4.25%), Punjab (4.09%), and Uttarakhand (3.81%).

Conclusion