Hyderabad, June 13: Telangana continued to record the highest inflation rate among all states in the country, with consumer inflation touching 6.15 per cent in May 2026, according to a report released by SBI Research.
The report stated that Telangana has maintained the highest inflation levels since January 2026. Factors contributing to the elevated inflation include higher fuel taxes, rising rural wages and dependence on imported fresh produce.
Regional Disparities in Inflation
The state-level Consumer Price Index (CPI) data revealed significant regional variations in inflation across India. Out of 36 states and Union Territories, around 12 to 14 recorded inflation rates above the national average.
Several major states, including Karnataka, Tamil Nadu, Madhya Pradesh and Rajasthan, also continued to report inflation levels higher than the national average.
Among major states, Andhra Pradesh, Assam and Odisha registered an increase of more than 2 percentage points in inflation during the January-May 2026 period, compared to an increase of only 1.19 percentage points at the national level.
Despite these variations, the report noted that inflation in most states remained within the 2 to 4 per cent range during the first five months of 2026.
National Inflation Rises
India’s Consumer Price Index inflation increased to 3.93 per cent in May from 3.48 per cent in April.
According to the report, the rise was largely driven by higher petrol and diesel prices, along with a temporary shortage of LPG supplies.
Transport inflation rose sharply by 176 basis points to 1.8 per cent in May. Inflation in restaurants and accommodation services, sectors heavily dependent on LPG, increased by 154 basis points to 5.7 per cent from 4.2 per cent in April.
Gold, Silver and Fuel Prices Add Pressure
The report highlighted that rising precious metal prices also contributed to inflationary pressures.
At the item level, silver jewellery accounted for 56 basis points of headline inflation, while gold contributed 30 basis points, unchanged from the previous month.
Global commodity trends, reflected in the World Bank’s Pink Sheet data, showed stronger inflation in silver prices compared to gold. Meanwhile, petrol’s contribution to inflation increased to 14 basis points.
LPG shortages also pushed up prices of cooked meat, snacks and other food items, adding to the overall inflation burden on consumers.
The report suggests that fuel costs, wage growth and commodity price movements will remain key factors influencing inflation trends across states in the coming months.
