Prices Continue to Fall in Telangana, Says Centre’s MoSPI

Hyderabad: Telangana recorded a negative inflation rate (deflation) for the second consecutive month in July, according to data released by the Union ministry of statistics and programme implementation on Tuesday. While Telangana was the only state to record deflation in June, three more states — Assam, Bihar, and Odisha — joined the list in July.

Telangana registered a deflation of 0.44 per cent in July, an improvement from 0.93 per cent in June. In July, Assam posted the steepest deflation of 0.61 per cent, followed by Telangana at 0.44 per cent, Odisha 0.30 per cent and Bihar 0.10 per cent.

The rural deflation in Telangana stood at 0.91 per cent and urban deflation at 0.05 per cent, both significantly lower than the national rural inflation of 1.18 per cent and urban inflation of 2.05 per cent. Against India’s overall inflation rate of 1.55 per cent in July, Telangana’s negative inflation of 0.44 per cent marks a rare economic phase where prices are not just rising slowly but actually falling — a phenomenon known as deflation.

Neighbouring Andhra Pradesh, which recorded zero inflation growth in June 2025 compared to June 2024, posted rural deflation of 0.05 per cent and urban inflation of 1.41 per cent in July. AP’s overall inflation stood at 0.50 per cent, also well below national averages.

This development signals a dramatic turnaround for Telangana, which battled double-digit inflation between 2020 and 2023 during the BRS regime, with rates often exceeding 10 per cent and raising concerns over affordability and living costs.

Since the Congress government took office in December 2023, inflation has steadily declined — from 1.31 per cent in February, to 1.06 per cent in March, a slight rise to 1.26 per cent in April, then down to 0.55 per cent in May, followed by -0.93 per cent in June.

When Telangana recorded the lowest inflation in the country in April this year, Chief Minister A. Revanth Reddy lauded the achievement on social media, calling it proof of “transformative and people-centric governance.”

He credited welfare schemes such as free bus travel for women, Rs 500 LPG cylinders, 200 units of free electricity, Rs 10 lakh health insurance under Rajiv Arogyasri, and free fine rice for ration card holders for reducing citizens’ financial burden.

“Under BRS rule, Telangana had the highest inflation in the country. Today, it stands as the state with the lowest inflation — a testament to the people’s government and its common man-centric policies,” Revanth Reddy said, adding that these measures have brought not only relief but also systemic economic change.

Telangana is now one of only four states to record deflation in July, with inflation well below the Reserve Bank of India’s 2-4 per cent comfort range. While experts caution that prolonged deflation could indicate slowing demand and investment, they believe the state’s moderate deflation of 0.44 per cent reflects targeted cost-cutting measures and policy interventions rather than economic stagnation. For now, Telangana’s rare achievement is being seen as a validation of its welfare-driven economic strategy.