Rural Manipur grapples with over 12 per cent inflation amidst unrest

Some 71 per cent of the state's population resides in rural areas

The rural regions of strife-ridden Manipur continue to grapple with surging retail inflation, a trend that emerged following the outbreak of violence in the state in May.

The Consumer Price Index (CPI)-based inflation rate in the state’s villages surged to 12.32 per cent in May from 5.72 per cent in April. This upward trajectory persisted, with a further rise to 12.98 per cent in June. Though it eased slightly in July, it remained at a heightened level of 12.06 per cent. Approximately 71 per cent of Manipur's population resides in rural areas.

In contrast, urban areas of the state observed far lower inflation rates: 2.73 per cent in May, 3.26 per cent in June, and 3.43 per cent in July. This was, however, much higher than a mere 0.06 per cent inflation that the urban areas had recorded in April.

Consequently, the cumulative inflation rate in Manipur exceeded 9 per cent over these three months, with June experiencing double-digit inflation.

The inflation rate in the state escalated from a modest 4.03 per cent in April to 9.46 per cent in May, further climbing to 10.09 per cent in June. It subsequently subsided to 9.52 per cent in July, aligned with the trend seen in rural areas.

Notably, Rajasthan recorded a higher inflation rate, at 9.66 per cent, in July than Manipur. Jharkhand also witnessed over 9 per cent inflation – 9.16 per cent – in the same month. However, neither of these states observed inflation surpassing 12 per cent in rural regions. In Rajasthan's villages, it stood at 9.30 per cent, while in Jharkhand, it was 9.91 per cent during this period.

The villages of Haryana, Tamil Nadu, and Telangana also encountered inflation rates exceeding 9 per cent in July: 9.46 per cent, 9.41 per cent, and 9.72 per cent, respectively.

Overall inflation stood at a moderate 4.31 per cent in May and 4.87 per cent in June at the all-India level. Even in rural areas, it remained relatively controlled at 4.23 per cent and 4.78 per cent during these months. However, July witnessed a surge in national inflation to 7.44 per cent, with rural parts experiencing a higher rate of 7.63 per cent compared to urban areas (7.2 per cent). This inflation surge can be attributed to the rise in food prices, particularly vegetables like tomatoes, as well as pulses and cereals.

Several Northeastern states also encountered elevated inflation rates during May, June and July, albeit not as pronounced as Manipur. For instance, in May, Mizoram registered an inflation rate of 6.07 per cent and Tripura at 6.52 per cent. In June, Mizoram recorded 6.22 per cent and Tripura 6.58 per cent. In July, Tripura witnessed 7.07 per cent.

Curiously, while inflation surged at the national level in July, Manipur witnessed a decline in inflation at a heightened level, due to downward pressure in rural areas.

Since February this year, rural Manipur has been grappling with inflation exceeding 5 per cent. Prior to that, inflation remained relatively subdued in the state's rural regions in the preceding financial year. May even experienced deflation at 0.11 per cent. Apart from a few months, inflation remained above 6 per cent at the all-India level in 2022-23.

Meanwhile, urban parts of Manipur experienced subdued inflation throughout 2022-23 and into the current financial year until July. In fact, these urban areas observed deflation for seven consecutive months until February FY23.