Rising inflation continues to influence everyday life and economic strategies for households throughout India. Regional variations in inflation rates draw attention to different local elements that impact residents' purchasing power, such as the availability of food and fuel and state-specific regulations. According to the Ministry of Statistics and Programme Implementation (MoSPI), recent data published as Consumer Price Index (CPI) statistics in June 2025 have seen some significant inflation hotspots among Indian states and Union Territories.
In this article, we will explore the top 10 Indian States and UTs that have the highest inflation rate, and this data is based on the Consumer Price Index.
Top 10 Indian States & UTs by Inflation Rate—June 2025
| Rank | States/UT | CPI Inflation Rates (%) For June 2025 |
| 1. | Kerala | 6.71 |
| 2. | Lakshadweep | 6.28 |
| 3. | Goa | 5.16 |
| 4. | Punjab | 4.67 |
| 5. | Jammu & Kashmir | 4.48 |
| 6. | Uttarakhand | 3.4 |
| 7. | Arunachal Pradesh | 3.24 |
| 8. | Haryana | 3.1 |
| 9. | Mizoram | 3.09 |
| 10. | Himachal Pradesh | 3.04 |
1. Kerala
Source: mapsofindia
With the highest inflation rates in India, Kerala is at the top of the list with a 6.71% inflation rate. Kerala’s inflation is primarily fuelled by rising costs in essential items—especially in food, transport, and services. All the supply chain disruptions and seasonal price peaks continue to challenge affordability for local consumers, making life more expensive in Kerala.
2. Lakshadweep
Source: mapsofindia
Lakshadweep comes in the second position in India’s inflation rate. Lakshadweep is one of the UTs of India, and the most beautiful island is smaller in size, which records a significant inflation rate of 6.28%. The remote geography contributes to higher logistics costs for food and daily essentials, amplifying the impact of national inflationary pressures and creating challenges for residents’ purchasing power.
3. Goa
Source: mapsofindia
Goa comes in the third position in India’s inflation rate, which records a 5.16% inflation rate. In Goa, tourism is making a strong comeback, pushing demand for goods and services, but supply limitations are making prices climb. Increases in food and transport costs have hit both locals and visitors, raising the overall cost of living in the state.
4. Punjab
Source: mapsofindia
Punjab comes in the fourth rank in India’s inflation rate, which is experiencing 4.67% inflation for June 2025. Fluctuating agricultural markets and energy prices are affecting the prices of everyday commodities. While the state produces much of its own food, fuel and input costs are quickly passed on to consumers at both urban and rural levels.
5. Jammu & Kashmir
Source: mapsofindia
Jammu & Kashmir comes in the fifth position in India’s inflation rates, which is experiencing 4.48% inflation for June 2025. Factors that influence the J&K inflation rate include the high transportation costs due to challenging terrain and intermittent supply issues. The rise in essential commodity prices is affecting daily life, especially in remote areas of the UT.
Data and analysis based on CPI figures published by the Ministry of Statistics and Programme Implementation, Government of India.
Conclusion
In India, inflation does not affect all the states equally, but it has different inflation rates in all 28 Indian states and 8 UTs, depending on the geographical locations, infrastructure, and supply chain. The Ministry of Statistics and Programme Implementation (MoSPI) releases the data for June 2025 based on the Consumer Price Index (CPI), which shows the regional prosperity, and these top 10 states show how expensive they are.
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