Telangana’s economy appears to be under pressure as the state recorded negative inflation once again in September. While India’s overall inflation stands at 1.54%, Telangana’s rate dropped to -0.15%, according to Central government data.
This marks the first time since Telangana’s formation in 2014 that negative inflation has been reported three times in a single financial year-in June, July, and September.
Besides Telangana, Bihar (-0.61%), Uttar Pradesh (-0.51%), and Assam (-0.56%) also reported deflation in September.
Within Telangana, rural inflation stood at -0.29%, while urban inflation was -0.05%. The state had briefly returned to positive inflation in August at 0.94%, before slipping back into negative territory.
Economists say deflation signals economic distress and is not a healthy indicator for the state. Telangana’s deflation began in June at -0.93%, improved slightly to -0.44% in July, but continues to show signs of weak demand and slow recovery.
