A tomato vendor sells vegetables at a Rythu Bazar in Visakhapatnam.
| Photo Credit: V. Raju
Rising prices are putting increasing pressure on household budgets across Andhra Pradesh, with the State’s retail inflation staying above the national average for the fifth month running. From groceries and school fees to personal care and everyday services, families are spending significantly more than they did a year ago.
According to the State government’s latest economic scorecard, Andhra Pradesh recorded retail inflation of 4.9% in May 2026, against the national average of 3.9%. The State’s inflation has stayed above the national rate since January this year.
The increase marks a sharp turnaround from October 2025, when inflation in the State was just 0.2%. In seven months, prices have risen steadily, affecting households in both rural and urban areas.
What it means to the common man
For an average family, the impact is becoming visible. A household that spent ₹10,000 a month on essential goods and services last year would now need to spend nearly ₹10,490 to buy the same items. Many families are forced to either spend more or reduce their purchases.
The burden is heavier in rural Andhra Pradesh, where inflation has reached 5.09%, against 4.61% in urban areas. The main reason is the sharp increase in food prices, according to a presentation made by Principal Secretary (Finance and Planning) Peeyush Kumar at a recent meeting of secretaries and heads of department.
Food and beverages recorded annual inflation of 6.91% in rural areas, while urban areas saw a lower increase of 5.44%. For example, groceries costing ₹1,000 last year now cost around ₹1,070 in rural markets, and about ₹1,054 in cities. Since rural households spend a larger share of their income on food, the increase has had a greater impact on their monthly budgets.
Urban families, meanwhile, are facing rising costs in education and services. Education services recorded an inflation rate of 7.36%, making school fees, books and related expenses more expensive. A family that previously spent ₹20,000 on a child’s education now has to spend nearly ₹21,500 for the same academic requirements.
Similarly, restaurants and accommodation services saw inflation of 7.47%, raising the cost of eating out and other hospitality-related expenses.
“The steepest rise, however, has been recorded under personal care and miscellaneous services. Inflation in this category reached 24.79% in rural areas and 25.71% in urban areas,” officials said.
The impact is evident in everyday expenses. A haircut that once cost around ₹120 now costs more than ₹150, while toiletries such as soap, toothpaste and detergent that cost ₹400 last year now cost nearly ₹500. Tailoring charges, household services and other routine expenses have also become significantly costlier.
Recognising the sustained rise in prices, the State government has placed the current inflation trend on its official “Needs Attention” watchlist, signalling the need for close monitoring as households continue to grapple with rising living costs. “Inflation remains moderate but requires monitoring to ensure rising prices do not affect household consumption and business costs,” officials said.
Published – July 16, 2026 03:57 pm IST
