Goa emerges as India’s No. 2 inflation hotspot

THE GOAN NETWORK | 29th August, 11:58 pm

PANAJI

Goa has emerged as one of India’s inflation hotspots. The State – ranked high on the human development index with high per capita income – recorded a 6.34 percent inflation rate in July 2025, the second highest in the country after Kerala’s steep 8.89 percent. 

This was at a time when the national average stood at just 1.55 percent, according to data released by the Centre. While most States managed to keep inflation below 5 per cent -- though above the national average --Goa’s figure was more than four times the all-India level.

Larger economies such as Karnataka (2.73 per cent), Maharashtra (2.28 per cent), Gujarat (1.53 per cent), Andhra Pradesh (0.5 per cent) and Uttar Pradesh (0.05 per cent) reported much lower inflation. 

Others, including Jammu and Kashmir (3.77 per cent), Punjab (3.53 per cent) and Mizoram (2.91 per cent), saw only moderate price rises.

The contrast sharpened further with States experiencing deflation. Telangana (-0.44 per cent), Odisha (-0.3 per cent) and Dadra and Nagar Haveli (-0.27 per cent) all reported falling prices, even as Goa struggled with soaring costs, raising fresh concerns about affordability and the rising cost of living.

In June too, Goa had stood among the poorest performers with 5.51 per cent inflation, only below Kerala (6.71 per cent) and Lakshadweep (6.28 per cent).

A glance at the monthly trend indicates Goa’s inflation refused to cool through 2025 -- 4.64 per cent in January and February, rising to 5.57 per cent in March, touching 6.54 per cent in April, peaking at 7.11 per cent in May, dipping slightly to 5.51 per cent in June before climbing again to 6.34 per cent in July.

The contrast with earlier years could not be sharper. In 2024, inflation hovered between 1.5 and 2 per cent, dipping even lower in some months. July last year, for instance, saw a modest 1.77 per cent rise. 

In 2023, the figure was relatively higher but still manageable, averaging around 3 per cent.




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