High Cost of Living: J&K's inflation rate hits 4.5% as food prices skyrocket

Srinagar, Mar 9: Rising inflation has sent food prices soaring across Jammu and Kashmir, creating significant economic pressure for residents as the Union Territory's inflation rate continues to outpace the national average. While at all India level has seen some moderation in inflation, J&K's upward trend has become a growing concern for policymakers and a painful reality for households already struggling with economic challenges.

According to the Economic Survey recently tabled by Chief Minister Omar Abdullah in the Legislative Assembly, inflation in J&K increased to 4.5% in 2024 from 4.3% in 2023, while India's overall inflation decreased to 5.0% from 5.7% during the same period. This divergence has sparked concerns about regional economic disparities and their impact on everyday life.

"I'm spending almost double on basic vegetables compared to two years ago. My salary hasn't increased proportionally, but everything in the market has become more expensive. A simple basket of vegetables that cost around 300 rupees last year now costs over 500. How are ordinary people supposed to manage when incomes remain stagnant but expenses keep climbing?," said Srinagar resident Nazir Ahmad.

The Economic survey highlighted that inflation in J&K has fluctuated between 3.8% and 4.5% from 2019 to 2024, compared to national figures of 3.7% to 5.0% during the same timeframe, suggesting a consistent pattern of price pressures in the region.

Local shopkeeper Mushtaq Ahmad, who runs a grocery store in Soura, expressed her frustration about the situation: "Customers complain about prices, but what can I do? I'm paying more to my suppliers too. My wholesale costs have increased . The government talks about controlling inflation, but we don't see any relief on the ground. Small businesses like mine are caught in the middle – we can't raise prices too much or we'll lose customers, but we can't absorb all the increases either."

While the Consumer Price Index for agricultural laborers in J&K ranks as the 6th lowest among nine selected states—better than Punjab, Haryana, Gujarat, Rajasthan, and Maharashtra—many residents feel that official statistics don't capture their daily reality.

"Statistics mean nothing when you're struggling to put food on the table," said Mohammad Iqbal, a cab driver from Baramulla with three school-aged children. "Prices of rice, cooking oil, and vegetables keep going up. Just last month, onion prices jumped by 40% in a single week. My income is seasonal, and with these prices, saving anything has become impossible. During winter months when tourism slows, we sometimes have to skip meals to make ends meet."

Food inflation in particular has hit families hard. The Economic Survey noted that the CPI-Food Index for agricultural laborers in J&K (1262) is almost at par with the national level (1265), despite the region's agricultural productivity.

The impact extends beyond urban centers.  Government officials attribute the inflation partly to global trends and supply chain disruptions but maintain that intervention measures have prevented more severe impacts.

Experts say that  "J&K's geographical isolation, transportation challenges, and unique market dynamics make it more susceptible to supply-side inflation pressures. The winter months particularly exacerbate these issues as road closures affect supply chains. Additionally, the region's transition following administrative changes has created certain structural inefficiencies that manifest in higher prices."