Delhi records lowest retail inflation in all Indian states/UTs in August

Delhi’s overall inflation was less than half of the national number, which came in at 6.83 per cent in August, slightly lower from 7.44 per cent in July but still above the central bank’s tolerance level of 2-6 per cent.

Delhi recorded the lowest retail inflation in all states and Union Territories (UTs) in August at 3.09 per cent, according to data released by the National Statistical Office (NSO) on Tuesday. The highest inflation was posted by Rajasthan at 8.60 per cent followed by Telangana and Haryana at 8.27 per cent each. Assam and West Bengal were the other two states with the lowest inflation in August at 4.01 per cent and 4.79 per cent, respectively, as per the data.

Delhi’s overall inflation was less than half of the national number, which came in at 6.83 per cent in August, slightly lower from 7.44 per cent in July but still above the central bank’s tolerance level of 2-6 per cent.  

A day after the inflation numbers came out, Aam Aadmi Party’s Raghav Chadha on Wednesday claimed that the low inflation in the national capital was a result of Chief Minister Arvind Kejriwal’s governance model and welfare schemes. Addressing a press conference, Chadha cited the film ‘Peepli Live’ to express his disappointment over the rising inflation in the country alleging it to be a consequence of “Hitlershahi” by the central government.

“Everything, from medicines to education, has become expensive. The Modi govt has set a record by setting the highest inflation rate in the last nine years,” he said, adding that even items like milk, curd, rice, flour, tea, and coffee that were never taxed by the British were now being taxed by the Centre.

The Rajya Sabha MP further said that the national average inflation was 6.83 per cent, while in Delhi, it was only 3 per cent. “This means that inflation in Delhi is less than half of the national average. In contrast, Rajasthan has 8.6 per cent inflation, Haryana 8.2 per cent, Odisha 8.23 per cent and Telangana 8 per cent,” he said.

Chadha said Delhi’s inflation was half the national average because Arvind Kejriwal had provided a welfare model in the city. “We can call it the Arvind Kejriwal Relief Model. Under this, the people of Delhi receive 200 units of electricity, 20,000 liters of water, health services, women’s transport services, and free pilgrimage for the elderly. Through these welfare schemes, a family in Delhi saves approximately Rs 15,000-16,000 every month,” he said.

Delhi Chief Minister Arvind Kejriwal, too, said that claimed that inflation was the lowest in the city as his government’s schemes for free education, health care, electricity, and water had provided relief to people of the national capital. “According to the data, inflation is again the lowest in Delhi, as always. The Delhi government’s free education, free treatment, free travel for women, free water, free electricity, free pilgrimage as well as honest government have provided tremendous relief to the people,” he wrote on X in Hindi.

According to the data released by the NSO, retail inflation based on the Consumer Price Index (CPI) was at 7 per cent in August 2022. Food inflation also eased in August to 9.94 per cent from 11.51 per cent in July. Food inflation cooled marginally as retail inflation in pulses, cereals and spices continued to remain in double digits in August despite a slight moderation.  

The RBI has projected the CPI inflation at 5.4 per cent for 2023-24.