Cost of living surges as inflation outpaces national average

Srinagar, Jul 11: The cost of living in Jammu and Kashmir has hit a troubling new high, with retail inflation in May recorded at 4.55%, almost double the national average of 2.82%, according to the Ministry of Statistics and Programme Implementation.

While India celebrated its lowest inflation rate since 2019, the residents of J&K are reeling under sustained price pressures that threaten household budgets and small businesses alike.

This widening inflation gap has spotlighted regional economic disparities, sparking debate over the efficacy of current economic and welfare policies in addressing the unique challenges of Jammu and Kashmir.

The biggest burden has been food inflation, driven by the region’s heavy dependence on imports — over 60 percent of J&K’s food items are sourced from outside the Union Territory. Essentials like rice, which is the staple food for most households, is now being sold at Rs 1300 per 30 kg, a steep increase that followed the Union government’s reduction in Public Distribution System (PDS) allocations from 10 kg to 5 kg per person.

“Earlier, we could manage our monthly ration with PDS and a small purchase from the market. Now with the reduced quota and rising prices, we are forced to buy more at market rates. It has become unbearable,” said Shaista Jan, a homemaker from downtown Srinagar.

Vegetables, too, are seeing a sharp climb in prices. Common items such as potatoes, tomatoes, and onions have witnessed a 30–40 percent surge over the past year.

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

Small traders and shopkeepers are struggling to maintain profitability without alienating price-sensitive customers. Mushtaq Ahmad, a grocery store owner in Soura, voiced his frustration:

“Customers complain about prices, but what can I do? I’m paying more to my suppliers too. My wholesale costs have increased dramatically. 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.”

According to the Economic Survey 2024, recently presented by Chief Minister Omar Abdullah in the Legislative Assembly, inflation in J\&K rose to 4.5 percent in 2024 from 4.3 percent in 2023, while India’s overall inflation decreased to 5.0 percent from 5.7 percent during the same period.

The survey further revealed that inflation in J&K has fluctuated between 3.8 and 4.5 percent from 2019 to 2024, whereas the national average ranged between 3.7 and 5.0 percent, indicating a persistent regional price pressure that has not abated even as the rest of the country enjoys some relief.

Government officials acknowledge the inflationary pressures but maintain that the situation is under control. A senior official in the Food and Civil Supplies Department, speaking on condition of anonymity, said: “Yes, there has been an increase in prices, especially after the central government revised PDS allocations. However, efforts are being made to stabilise the supply chains and ensure adequate stock of essential commodities, especially ahead of the winter season.”

However, experts and citizens alike argue that short-term fixes are not enough. The region needs targeted economic interventions, investment in storage and logistics, and a review of existing subsidy and ration policies to cushion the vulnerable sections from persistent inflation shocks.