Food inflation drops more in wealthier Indian states, widening economic disparities.

A State Bank of India report shows that food inflation has decreased more in middle and high-income states than in low-income states over the past decade. This trend is due to labor migration from poorer to wealthier states for better jobs, which speeds up disinflation in richer areas. The report also notes that retail inflation across India is nearing the Reserve Bank of India's 4% target. However, the growing economic activity in high-income states may lead to higher inflation pressures, highlighting the need for balanced development strategies.

December 13, 2024
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