Top-10 Indian States and Union Territories with the Highest Inflation by June 2025

Inflation means the rise in prices of everyday goods like food, fuel and clothes. It affects how much people have to spend to live comfortably. In June 2025, some states and union territories in India saw higher inflation than others. This difference was due to factors like transport costs, local demand and supply issues. Let’s look at the top-10 regions with the highest inflation rates.

About Inflation

Inflation means the rise in prices of goods and services we use every day, like food, transport and electricity. It affects how much money we need to spend on basic needs. In June 2025, some Indian states and union territories saw higher inflation rates than others, based on the Consumer Price Index data shared by the Ministry of Statistics and Programme Implementation.

Top-10 Indian States and Union Territories by CPI Inflation by June 2025

In June 2025, some Indian states and union territories saw higher price rises than others. Based on CPI data, here are the top-10 regions with the highest inflation affecting daily living costs:

Rank	State/ UT	CPI Inflation Rate (%)
1.	Kerala	6.71
2.	Lakshadweep	6.28
3.	Goa	5.16
4.	Punjab	4.67
5.	Jammu & Kashmir	4.48
6.	Uttarakhand	3.40
7.	Arunachal Pradesh	3.24
8.	Haryana	3.10
9.	Mizoram	3.09
10.	Himachal Pradesh	3.04

Kerala

Kerala had the highest inflation rate in June 2025. Prices of food, transport and services went up sharply. Seasonal price hikes and problems in the supply chain made life more expensive for people in the state.

Lakshadweep

This small island UT saw high inflation mainly because of its remote location. Transporting goods like food and fuel is costly, making everyday items more expensive for the local population.

Goa

With tourism bouncing back, demand for goods and services in Goa is growing. However, the supply is not keeping up, which is pushing prices higher, especially in food and transport.

Punjab

In Punjab, changing farm prices and rising energy costs are making basic goods more costly. Even though the state produces a lot of food, higher input costs are passed on to the public.

Jammu & Kashmir

In this hilly region, transport and weather challenges increase the cost of bringing in goods. This results in higher prices for food and daily essentials, especially in rural and remote areas.