Rural Inflation Trends Downward, Easing Distress

The Economic Survey 2025-26 reports a decline in rural inflation, maintaining a lower level compared to urban areas, thereby alleviating stress in rural regions. Despite exceptions in Kerala and Lakshadweep, where inflation exceeded the 6% mark, most states remained within the Reserve Bank of India's prescribed 2-6% tolerance band. State-level inflation variations are attributed to local factors rather than broad trends, with a noticeable correlation between higher wage rates and increased inflation in some states.

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