Telangana has emerged as the only state in India to record food price deflation for eight consecutive months in the current 2025-26 financial year, up to December 2025. This means that on average, the prices of food items in the state were lower than they were in the same months last year, a trend not seen elsewhere in the country.
What the Data Shows
According to recent figures, Telangana’s food inflation was just 0.7% in December 2025, the lowest among all states, and in previous months, food prices had actually fallen year-on-year — a clear sign of deflation. Most other states experienced at least some period of positive food inflation during the year.
Why This Matters
Food prices have a huge impact on overall inflation numbers because food accounts for a large part of household spending and inflation indices like the Consumer Price Index (CPI). When food prices fall, it can pull down the overall inflation rate.
However, sustained deflation — especially in essential items — can signal weak demand or deeper economic issues rather than just consumer benefit.
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