PANAJI
Goa has emerged as the third-highest inflationary State in the country during the current financial year so far, recording an inflation rate of 4.77 per cent for the April–December period -- a figure that is 2.88 percentage points higher than the national average.
According to data presented in the Economic Survey 2025-26 tabled in Parliament, Goa’s inflation trajectory, despite some moderation in recent months, remains a cause for concern. While the State’s inflation rate eased significantly from 6.34 per cent recorded in the first quarter of the financial year, the overall trend continues to point towards persistent price pressures.
The Economic Survey highlights that Goa has witnessed a steady and consistent rise in inflation over the past three years. From 2.94 per cent in 2023–24, the inflation rate climbed to 3.54 per cent in 2024–25, and has now surged to 4.77 per cent by December 2025, reflecting mounting cost pressures across sectors.
With this, Goa ranks only behind Kerala (8.05 per cent) and Lakshadweep (6.69 per cent), which reported higher inflation during the same period. Although the State’s inflation rate remains below the Reserve Bank of India’s upper tolerance band of 6 per cent, it is substantially higher than the national average inflation rate of 1.7 per cent, underlining a sharper rise in the cost of living in the coastal State.
Goa’s elevated inflation levels could be attributed to a combination of factors, including higher food prices, housing costs, and services inflation, particularly in tourism-driven regions. Seasonal demand, rising input costs, and supply-side constraints have also played a role in keeping prices elevated.
The sustained inflationary trend raises concerns for households, especially fixed-income earners and daily wage workers, as higher prices erode purchasing power. It could also pose challenges for policymakers as they attempt to balance economic growth with price stability.
The coastal State is expected to continue to feel the pinch of rising prices well into the next financial year, as the Reserve Bank of India (RBI) has pegged the inflation rate in India at 2.1 per cent in the coming fiscal. RBI has pegged inflation at 4 per cent in the first quarter and 4.2 per cent in the second quarter.
