J&K inflation remains above national average in 2025-26: Economic Survey
Srinagar, Jan 30: Jammu and Kashmir continues to record higher inflation than the national average, despite an overall easing of price pressures across the country, according to the Economic Survey 2025–26 tabled in Parliament by Finance Minister Nirmala Sitharaman on Thursday.
Data presented in the Survey shows that during April–December 2025, headline inflation in Jammu and Kashmir stood at 3.60 per cent—more than double the All-India average of 1.72 per cent for the same period.
While inflation in the Union Territory has moderated over the past few years, it has consistently remained above or close to the national trend, raising concerns about the purchasing power of households in the region.
In 2023–24, J&K recorded inflation of 6.34 per cent, slightly lower than the national average of 6.66 per cent. The following year, inflation in the UT eased to 4.15 per cent, even as the national figure remained higher at 5.36 per cent. In 2023–24, J&K’s inflation rose marginally to 4.48 per cent, nearly aligned with the national average of 4.63 per cent.
However, the gap has widened again in the current financial year. While the national inflation rate has fallen sharply to 1.72 per cent, Jammu and Kashmir continues to see relatively elevated price levels at 3.60 per cent, indicating persistent challenges in bringing down consumer prices in the region.
A comparison with other states and Union Territories during April–December 2024 reveals stark regional variations. Several states have witnessed near-zero or negative inflation, including Bihar, Assam, Odisha and Telangana, contributing to the sharp fall in the national average. At the same time, a few regions such as Kerala, Lakshadweep and Goa have reported even higher inflation than J&K.
Economists attribute the slower decline in inflation in Jammu and Kashmir to a combination of structural and seasonal factors. Higher transportation costs due to the region’s difficult terrain, heavy dependence on supplies from outside the UT, and weather-related disruptions—particularly during the harsh winter months—are seen as key contributors to sustained price pressures.
“The inflation situation in J&K reflects unique logistical and geographical challenges. Supply chain bottlenecks, especially in winter, and the region’s reliance on external markets for essential commodities keep prices elevated compared to other parts of the country,” said an economist familiar with the region’s economic trends.
The Economic Survey notes that while India as a whole has seen broad-based moderation in inflation, regional variations remain significant and require targeted policy interventions. For households in J&K, the persistence of above-average inflation continues to weigh on household budgets, especially on food, fuel and other daily essentials.
Food inflation, in particular, remains a concern. Seasonal disruptions in the supply of vegetables, dairy and other perishables, coupled with limited local production capacity, push up prices during peak winter and early spring months. Fuel costs, influenced by both national trends and local distribution challenges, also add to the overall inflationary pressure.
With inflation easing nationally, policymakers are now expected to focus on addressing region-specific supply and logistics challenges to ensure that the benefits of price stability are felt more evenly across all states and Union Territories. Experts suggest that improving road connectivity, strengthening cold storage infrastructure, and encouraging local agricultural production could help reduce dependence on external supplies and ease inflationary pressures in the long term.
The Economic Survey 2025–26, presented ahead of the Union Budget, provides a comprehensive review of the country’s economic performance and outlines challenges and opportunities across sectors and regions. The Union Budget is expected to be presented on February 1.
