Thalinomics goes for a toss as LPG fuels food price rise, Telangana logs 6.32% inflation

In Hyderabad, the cost of food has risen significantly, leading to an overall inflation rate of 6.32%, the highest in the country. This surge in prices is attributed to the increased cost of raw materials over the past six months, according to various restaurant establishments and small food vendors. The impact is evident in the hike in prices across eateries, from high-end restaurants to street-side food carts.

Gas prices have seen a sharp rise of 85%, while essential items like urad dal have increased by 17%, and even disposable items have seen a 10% increase. These rising costs have forced establishments like Panchakattu Dosa, a popular franchisee in Hyderabad, to raise their prices. The restaurant has attributed the price hike to the increased costs of all raw materials, leaving no option but to pass on these expenses to consumers.

The situation is not limited to upscale restaurants; even smaller eateries have increased their prices by up to 20% in the last six months. Food kiosk owners in Ameerpet have expressed their frustration, stating that they cannot reduce prices due to government's lack of price reduction measures and the hike in commercial LPG cylinder prices. A commercial LPG cylinder, which was priced at ₹1,742 on January 1, is now available for ₹2,985 after a reduction of ₹209 at the beginning of August, marking a price jump of 71%.

The increased food prices have made it challenging for individuals with limited budgets, such as students preparing for exams, to enjoy home-cooked meals. Instead, they are resorting to cheaper alternatives like ready-to-eat meals, which consume less gas, rather than traditional meals with rice, dal, and other ingredients. The situation is backed by statistics released by the Ministry of Statistics and Programme Implementation, which reveal that Telangana recorded the highest inflation rate in the country at 6.32%, compared to the national average of 4.45% year-on-year inflation rate based on the All India Consumer Price Index (CPI) with base year 2024 for the month of July 2026 over July 2025.