High Inflation Does Not Equate to Price Hikes, Says Minister G. R. Anil
Thiruvananthapuram: Minister G. R. Anil stated that a high inflation rate in Kerala does not necessarily imply the highest prices in the state. He clarified that even if absolute prices remain low, inflation can increase, and conversely, it can decrease even with stable prices. According to the Minister, two years ago, Kerala recorded the lowest prices nationally, based on the Consumer Price Index. Data on inflation for the financial years 2020 to 2024 showed Kerala’s rank to be 14th, 15th, and 17th respectively, indicating that short-term increases in inflation are a temporary phenomenon.
The Minister emphasized the need to examine the reasons behind a significant change in Kerala’s inflation rate, especially after it remained below the national average from April 2022 to October 2024, and then showed no substantial increase until May 2025. It is understood that the recent short-term rise in the rate is primarily due to an increase in the prices of food, beverages, and miscellaneous items, with no significant variation in other categories.
Highlighting a specific commodity, Minister G. R. Anil mentioned that coconut oil, a staple in the food and beverage category, is widely consumed in Kerala, and its scarcity often leads to price surges. He noted that when the price of coconut oil witnessed an unusual increase recently, the government intervened urgently. As a result of this intervention, even corporate supermarkets adjusted their prices to align with Supplyco’s pricing, ensuring affordability for consumers.