Economic Survey: Andhra Pradesh inflation at 1.39%, lower than national average
The national average inflation during the same period was 1.72 per cent, highlighting better price stability in the State.
By - Sistla Dakshina Murthy
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Amaravati: Andhra Pradesh recorded significantly lower inflation than the national average during the current financial year, with consumer price inflation standing at 1.39 per cent from April to December, according to the Central Government’s Economic Survey released on Thursday.
The national average inflation during the same period was 1.72 per cent, highlighting better price stability in the State.
‘Inflation on a declining trend in AP’
The Economic Survey noted that inflation in Andhra Pradesh has been steadily declining, reflecting easing prices of essential goods and services.
Inflation measures the rise or fall in prices of commonly used items, and a decline indicates improved affordability for consumers.
How inflation is calculated
Inflation in India is calculated primarily based on the Consumer Price Index (CPI), which tracks the cost of items regularly purchased by households.
These include rice, vegetables, milk, fuel, clothing, electricity charges, medical expenses and house rent. The Reserve Bank of India currently uses CPI as the benchmark to assess retail inflation.
Rural inflation is higher than in urban areas
The survey observed that inflation in rural areas remains higher than in urban regions, a trend seen across several states. Monthly inflation figures are compiled using data from all states and Union Territories.
Sharp fall compared to previous years
2022–23: Andhra Pradesh recorded a high inflation rate of 7.57 per cent, compared to the national average of 6.66 per cent.
2023–24: Inflation in the State stood at 5.54 per cent, again above the national average of 5.36 per cent.
2024–25: A turning point, with AP inflation declining to 4.41 per cent, below the national average of 4.63 per cent.
2025–26 (till December): Inflation further dropped to 1.39 per cent, marking a significant improvement.
The Economic Survey termed the latest figures a positive development, as the RBI considers a retail inflation range of 2 to 6 per cent as desirable.
Kerala, Lakshadweep breach upper limit
While most states remained within limits, Kerala (8.05%) and Lakshadweep (6.69%) crossed the upper inflation threshold by December this financial year, the survey noted.
Centre praises AP’s land-use reforms
In a separate observation, the Economic Survey praised Andhra Pradesh’s land-use conversion reforms, stating that the repeal of the NALA system has significantly reduced procedural delays.
The Centre said exempting certain categories from mandatory land-use conversion helped streamline approvals and improve ease of doing business.
Faster approvals, fewer irregularities
Following the policy change after the coalition government assumed office, urban local bodies now collect development charges during plan approvals.
The Survey said this move helped curb delays, prevent illegal collections, and improve administrative efficiency within the Revenue Department.
Easier environmental clearances
The Survey also highlighted that Andhra Pradesh, along with Andaman and Nicobar Islands, Goa, Tamil Nadu and Uttarakhand, has adopted measures such as self-certification and third-party inspections to simplify environmental clearances and overcome procedural bottlenecks.
