Hyderabad:Telangana is the only state in India to record a negative inflation rate of 0.93 per cent for June 2025, when compared with June 2024, according to data released by the Union ministry of statistics and programme implementation (MoSPI) on Tuesday.
The state, which has been consistently recording the lowest inflation in the country over the past six months, has now entered a period where prices are falling — a rare economic phenomenon termed ‘deflation.’
The figures highlight a sharp contrast with the national scenario, where overall inflation stood at 2.1 per cent. Telangana’s rural inflation fell steeply to (-)1.54 per cent when compared to the national rural average of 1.72 per cent, while urban inflation stood at (-)0.45 per cent against the national urban rate of 2.56 per cent.
Neighbouring Andhra Pradesh, meanwhile, recorded a zero inflation growth rate in June 2025 when compared with June 2024, with rural inflation at -0.55 per cent and urban inflation at 1.06 per cent. Though not in deflation, AP also remains significantly below national averages.
This milestone marks a turnaround for Telangana, which grappled with double-digit inflation between 2020 and 2023 during the BRS regime. Inflation during that period often exceeded 10 per cent, sparking concerns about affordability and the rising cost of living.
Since the Congress government assumed power in December 2023, inflation has steadily declined — from 1.31 per cent in February, to 1.06 per cent in March, slightly increased to 1.26 per cent in April, slipped to 0.55 per cent in May and now to -0.93 per cent in June.
When Telangana witnessed lowest inflation in the country in April this year, Chief Minister A. Revanth Reddy on April 12 and hailed the achievement as proof of the Congress government’s “transformative and people-centric” governance.
Revanth Reddy credited welfare schemes such as free bus travel for women, `500 LPG cylinders, 200 units of free electricity, `10 lakh health insurance under Rajiv Arogyasri and free fine rice for ration card holders for helping lower the financial burden on citizens.
With inflation well below the Reserve Bank of India’s recommended 2-6 per cent range, Telangana remains the only large state in the country to record deflation. The state government now sees this achievement as a validation of its policy decisions aimed at balancing welfare with economic stability.
