Staff Reporter
GUWAHATI: Assam recorded the lowest inflation rate in the country in August this year. The state marked an inflation rate of 0.66 per cent compared to 1.69 per cent at the national level.
The inflation rate in the state is falling gradually. In November 2021, the inflation rate in the state was 8.3 per cent, which came down to 3.91 per cent in July 2023 and 0.66 per cent in August 2025.
Chief Minister Dr Himanta Biswa Sarma said, “Assam emerges as a national model for price stability and public welfare. The credit for this goes to fiscal discipline and goal-based governance. A stable economic environment is the cornerstone of our double-engine government agenda where inflation bows to governance.”
According to sources, inflation depends on several factors. Demand-pull factor: It occurs when there is more money chasing fewer goods and services, leading to increased aggregate demand. Cost-push factor: It happens when the cost of producing goods and services rises, forcing businesses to increase prices to maintain profitability.
Supply-side constraint: Inefficiencies in the agricultural sector and inadequate infrastructure can limit the supply of goods and services, leading to an increase in prices.
Monetary and fiscal policies: Government and banking monetary and fiscal policies can influence inflation.
External factors: Global market disruptions and prices of imported goods, such as oil, can also affect domestic inflation.
According to sources, Assam has strong fiscal management, accompanied by a strict monitoring mechanism to check inflation. The welfare schemes launched by the government have also helped check the inflation rate in the state.
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