State Governments' Relief Measures To Combat Surging Inflation

India Retail inflation: States are worried about the impact of sharp increase in prices on household essentials.

At least 10 states have announced over 1 trillion rupees ($12.6 billion), mainly in cash transfers and electricity subsidies, for households to combat inflation, according to government officials.

States are worried about the impact of sharp increase in prices on household essentials. For example, food inflation, which accounts for nearly 40% of the CPI basket, rose 7.62% year on year in August compared to a revised 6.69% in July, the National Statistics Office said on Monday.

Kerala distributed a package of free food items costing about 450 rupees ($5.70) each to over 8 million families during the Onam festival earlier this month. Also a 1,000 rupee additional rural job guarantee programme for over 500,000 workers was announced.

Punjab and Delhi recently announced 300 kilowatt hours of free electricity per household and free travel for women on state buses, while promising such measures in other states if it comes to power in state elections later this year.