Kerala recorded the highest year-on-year inflation among India’s major states in December 2025, sharply outpacing the national average and highlighting mounting cost-of-living pressures, particularly in rural areas.

New figures released by the Ministry of Statistics and Programme Implementation on Tuesday show Kerala’s combined inflation rate at 9.49 per cent in December 2025. This was significantly higher than the national headline inflation of 1.33 per cent.

The data, based on the Consumer Price Index (CPI) and applicable to states with populations above 50 lakh, placed Kerala at the top of the list. Karnataka followed with 2.99 per cent, while Andhra Pradesh recorded 2.71 per cent.

Rural households feel sharper price pressures

Inflationary pressure was most severe in rural Kerala, where prices rose by 10.77 per cent year-on-year. In comparison, urban inflation in the state stood at 7.13 per cent.

At the national level, rural inflation during the same period was much lower at 0.76 per cent, underscoring the scale of Kerala’s divergence from the broader trend.

General Index signals rising cost of living

Kerala’s General Index increased from 218.6 in November 2025 to 221.6 in December 2025, pointing to a sustained rise in the cost of living.

Across India, officials attributed the increase in headline inflation to higher prices in personal care and effects, vegetables, meat, fish, and pulses. Some items recorded sharp year-on-year price rises, with gold up 68.66 per cent and silver rising 97.07 per cent.

CPI series to shift base year

The December data marks the final CPI release using the 2012=100 base year. The National Statistics Office has announced that a revised CPI series, with 2024 as the base year, will be rolled out on 12 February 2026.