Patna: Bihar’s cost of living remains lower than the national average, according to the latest Consumer Price Index (CPI) data released for April, with the state outperforming several larger states on inflation indicators.
The figures indicate that Bihar’s latest CPI stands at 104.01, compared with the national average of 105.12.
In practical terms, this means goods that cost Rs 100 in April 2024 now cost approximately Rs 104.01 in Bihar, while the same basket of goods costs Rs 105.12 nationally.
Officials said Bihar currently ranks ahead of 26 states in terms of lower inflationary pressure, with only nine states and Union Territories performing better on the index.
Bihar Inflation Lower Than National Rate
According to the data, Bihar’s inflation rate in April stood at 2.74%, lower than the national inflation rate of 3.48%.
The figures also placed Bihar ahead of several major states, including:
- Madhya Pradesh
- Rajasthan
- West Bengal
- Punjab
While neighbouring Jharkhand recorded a lower CPI of 103.78, its inflation rate stood slightly higher at 2.88%.
Electricity Subsidy Linked To Lower Housing Inflation
Officials and analysts attributed a significant portion of Bihar’s lower inflation to reduced housing and energy costs.
The state’s inflation category covering:
- housing
- water supply
- electricity
- fuel and gas
registered a decline of 5.83% compared with the previous year.
Analysts said the Bihar government’s scheme providing 125 units of free domestic electricity every month had directly reduced household expenditure for many residents.
Healthcare and education costs also remained comparatively stable, with healthcare inflation recorded at 1.93%.
Rural Bihar Facing Higher Inflation Than Urban Areas
Despite the broader decline in inflation, the data revealed that rural Bihar continues to experience higher price pressure than urban centres.
According to the figures:
- rural CPI stood at 104.17
- urban CPI stood at 103.09
Economists said the disparity highlighted structural weaknesses in supply chains, as many essential commodities continue to reach villages through distribution networks originating in urban markets.
Experts suggested that:
- strengthening local production
- improving rural supply systems
- reducing transport inefficiencies
could help narrow the rural-urban inflation gap.
Bihar Looking To Improve Further
Analysts noted that Bihar could potentially improve its position further by studying policy approaches adopted in states such as:
- Delhi
- Odisha
- Chhattisgarh
The latest figures come amid continuing national discussions over inflation and household expenditure, with Bihar emerging comparatively better positioned on several key consumer cost indicators.
