Manipur Records Highest Retail Inflation, Delhi The Lowest: Economic Survey 2023-24

Rural Manipur has experienced the highest retail inflation in India, surging up to 10 per cent in July 2024. It has increased drastically from April's 5.72 per cent and 12.32 per cent in May. It portrayed the economic impact of the protests, law and order situation and pandemic, adding up to these struggles. Of the total population of Manipur, about 71% live in rural areas. So, the hit of price rise was especially acute for its residents, who bear an increased cost of essential goods, particularly food items. 

 In marked contrast, Delhi has the lowest retail inflation among major states at 2.6% in the economic survey 2023-24. The capital has been more or less stable for prices, more so in the urban areas, compared to the rural areas. Manipur and Delhi form the two extremes, which reflect some of the economic problems a few states in India face, among other causal factors like food supply disruptions, extreme weather conditions like delayed monsoon, heavy rainfall, regional production disparity etc. 

Accordingly, high inflation in Manipur is aligned with food inflation and has been the catalyst behind overall price increases. Consumer Price Index or CPI data shows that the rise in the prices of food items pushed inflation rates higher than the national averages. Experts say that imported-dependent food items make states like Manipur vulnerable to price increases, as they bear most of the logistics cost pressures and market fluctuations.

Also Read: Growth Momentum Quickens in Q2, Food Inflation a Concern: RBI Bulletin

The low levels of inflation in Delhi can be attributed to the diversified economic base and efficient supply chain management that cushion the consumers against price shocks. Therefore, the urban environment of the capital, where more focus is given to services and manufacturing, stands in complete contrast to the rural economy of Manipur.

While the Central Government at this point remains consistent in monitoring the trends in inflation and measures for price stabilization, the Manipur situation is a grim reminder of the complexities of regional economic disparities in India. The continuous battles in the rural areas underline the need for focused interventions to help the vulnerable sections who are bearing the burden of the price rise.