While most Indian states saw a dip in inflation, Kerala experienced a sharp rise driven by soaring gold prices, increased spending on personal care items, and rising coconut costs.
In February 2025, Kerala’s inflation surged to a five-year high of 7.3%, up from 6.8% in January, even as food inflation across India dropped to a 21-month low. This pushed the country’s overall retail inflation down to a seven-month low of 3.6%.
The state has recorded inflation above 6% since October 2024, with spending on personal care and gold at 2.5 times the national average, making Kerala’s inflation rate more than double that of the rest of India.
