hyderabad at 947 telangana has the highest rural consumer price index cpibased inflation in the country in october this year experts attribute the high rural inflation to increased demand for products and services as well as a surge in prices according to the most recent figures released by the union ministry of statistics and programme implementation states rural inflation is 82 higher than urban inflation however the state can take a breather as the combined inflation rate rural and urban has dropped to 88 from 10 a few months agoapart from telangana only three other states have rural inflation rate of 8 or higher for october west bengal is second with 86 followed by haryana 84 and ap 8 according to srihari naidu a consultant economist with the national institute of public finance and policy in delhi the inflation rate varies from state to state for a variety of reasons when the central government conducts a household expenditure survey they consider various factors such as food prices services consumer goods and demand which determine the inflation rate in states he saidexperts warn that while inflation clearly indicates more demand it also shows that rural selfsufficiency to produce goods is declining any inflation rate above 3 is risky and anything above 10 puts strain on the system even if spending capacity is high said dr krishna reddy chittedi associate professor of economics at the university of hyderabad uoh he however said that much depends on how producers of goods pass the benefit of lower prices to consumers in future which could help tame inflationas per central government there is a failure in meeting inflation target when average inflation rises above the targets upper tolerance level of 6 or declines below its lower tolerance level for three consecutive quarters cpibased inflation ranged from 63 in the march quarter to 72 in june quarter to 7 in the september quarter in the country