Hill Region Sees Mild 1.56% Inflation as Food Prices Dip but Services Rise

The CPI data for July–August 2025/26 shows that the Hill region recorded a mild inflation of 1.56% year-on-year, with the index moving from 102.87 last year to 104.47 this year. On a month-to-month basis, inflation rose only 0.12% compared to June–July 2025, indicating relatively stable price movements compared to other ecological belts.

The Food and Beverage group (35.47% weight) registered a -1.51% year-on-year decline, falling from 105.22 to 103.63. This suggests that households in the Hill areas benefitted from cheaper food items, especially cereals and vegetables, which often contribute heavily to local consumption patterns. The decline reflects seasonal supply easing pressures in rural and semi-urban markets.

However, the Non-food and Services group (64.53% weight) increased by 3.31% year-on-year, rising from 101.57 to 104.93. This upward trend signals that while food has become more affordable, households are now spending more on housing, education, health, utilities, and personal services. These rising costs highlight that service-driven inflation is gradually becoming more prominent even in semi-urban and rural Hill regions.

Overall, the Hill region shows a balanced inflation scenario—food prices are pulling overall inflation down, but rising service costs are keeping the general cost of living elevated. While the inflation rate is moderate compared to other belts, the structural rise in non-food expenses remains a concern for households.