Bhubaneswar, June 13: Odisha has seen a continued improvement in its inflation scenario, with the state’s retail inflation rate falling to 2.28% in May, down from 2.50% in April. This decline places Odisha below the national average inflation rate of 2.82%, which is currently at its lowest level in six years.
The latest data reveals a drop in both rural and urban inflation rates within the state. Rural inflation stood at 2.31%, while urban areas recorded 2.19%—both lower than their respective April figures of 2.57% and 2.25%.
This downward trend reflects a broader recovery in the state’s price stability after a period of high inflation. In fact, Odisha had reported its highest recent retail inflation rate at 7.22% in June 2024, with prices remaining elevated through the end of the year. Since early 2025, however, the inflation rate has been on a steady decline.
One of the key reasons behind this easing is the reduction in food and beverage prices. The cost of essential items such as grains, pulses, vegetables, and fruits decreased in May, contributing significantly to the overall moderation in prices.
The Reserve Bank of India has projected that retail inflation across India will likely stay below 4% in the current financial year (2025–26), and Odisha appears to be moving in line with that forecast.
However, inflation trends may still be influenced by factors such as agricultural output, private sector investment, and the pace of domestic economic growth. Additionally, global market fluctuations and geopolitical uncertainties could affect local price levels.
For now, the decline in inflation is a welcome relief for consumers in Odisha, offering a more stable cost of living and a positive outlook for the state’s economy.