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- Odisha and Telangana have listed the maximum rate of Consumer Price Inflation (CPI) through December 2019. Both nations seen inflation rate dropped to 9.4 percent, exceeding the national average . 35 percent in the time, a study by CARE Tests revealed, quoting figures from the Ministry of Statistics & Programme Implementation (MoSPI). The research demonstrates that 22 countries including Union territories clocked CPI rates surpassing the national average. Uttar Pradesh was alongside Odisha and Telangana having an inflation rate of 8.9 percent. In Odisha, the inflation rate was high in December 2019 mostly due to exorbitant food rates. Food inflation in December in 12.2 percent was in a six-year high mostly because of some negative base effect and considerable spike found in the event of vegetable costs and pulses. All elements in the food jar have seen a rise in inflation over a month past. The vagaries of monsoon have adversely affected food production and also have had a bearing on food inflation. The analysis further substantiates that costs of betel, tobacco increased by 3.4 percent in December 2019, slightly higher compared to 3.3 percent increase in the past month and lower compared to 5.7 percent increase in precisely the exact same period one year ago. The metropolitan CPI inflation climbed to some high of 7.5 percent in December 2019 compared with 5.8 percent in the preceding month whereas the rural CPI inflation climbed to over five-year high of 7.3 percent, further narrowing the gap between both of these sub-indices. The gain in rural inflation has been triggered by increase in food costs while urban inflation has been higher due to a mixture of meals high food costs and costs of the mixed part. “Both urban and rural inflation have been over seven percent being driven by double digit increase in food costs in both areas. The development in vegetable inflation into greater than six-year high combined with inflation at the pulses segment increasing to some greater than 3 year high are the primary motives driving inflation. It’s very important to notice here that the large food inflation in December, 2019 has come from a negative foundation of the last calendar year. Additionally, significant spike at the communication and transport section has also weighed inflationary pressures”, the analysis noted. In accordance with CARE Ratings, inflation is very likely to moderate marginally from the forthcoming months but might continue to stay at elevated levels. Statistically, CPI inflation is going to be disabled by low base effect in January that will rise in the following two months. On the flip side, moderation in costs of onions and other veggies that has been seen in January could encourage the moderation in total inflation.