Current Affairs · Economic Indicators
According to CPI data, Kerala has historically recorded high inflation rates compared to other states. Which of the following structural explanations best fits this data pattern?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Kerala’s high housing and service-sector weights in CPI contributed to higher price stickiness.✓
- 2The state’s food inflation was the lowest, pulling down headline inflation.
- 3Industrial slowdown caused cost deflation.
- 4Kerala’s inflation was purely due to GST reduction pass-through lag.
Correct answer
Kerala’s high housing and service-sector weights in CPI contributed to higher price stickiness.
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