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    <title>RURAL INFLATION ON A DECLINING TREND FURTHER REDUCING RURAL STRESS;</title>
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    <description>Rural inflation declined in 2025 and fell below urban inflation as food-price easing lowered inflation across sectors. Most states recorded retail inflation within the RBI&#039;s 2-6 percent tolerance band in 2025 26, except Kerala and Lakshadweep which breached the upper band. State-level heterogeneity reflected persistent deviations driven by local relative-price movements; analysis shows positive associations of state inflation with wage rates, state GDP growth, and COVID impact, a negative association with industrial output share, and GST imposition being price neutral for state inflation differentials.</description>
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