The cost of living in Bihar remains more stable than the national average, according to the Consumer Price Index (CPI) released for April 2025 by the Ministry of Statistics and Programme Implementation. The state’s combined CPI stands at 188.2, which means that goods and services that cost ₹100 in 2012 now cost ₹188.2 in Bihar. In comparison, the national average CPI is 192.6.

This implies that Bihar is relatively more affordable than many parts of India when it comes to daily necessities. The inflation rate in Bihar is 2.90%, which is 0.26% lower than the national average of 3.16%.

What Is Included in the CPI?

The Consumer Price Index is calculated using the prices of 26 essential items and services, including:

  • Food & beverages (grains, fruits, vegetables, milk, oil, spices)
  • Protein sources (meat, fish, eggs)
  • Clothing and footwear
  • Housing and household goods
  • Fuel, lighting, and energy
  • Health services and medicines
  • Education and personal care
  • Transport, communication, and recreation

These categories reflect the core spending patterns of families, both in rural and urban Bihar.

Why Is This Important?

“Inflation rate matters because it helps us understand how fast prices are rising. It directly affects planning household budgets, interest rates, and investment returns,” said a senior official from the ministry.

Lower inflation means that the purchasing power of citizens is better preserved, especially in lower-income states like Bihar.

Key Takeaways

  • Bihar’s CPI is 188.2, compared to the national average of 192.6
  • Inflation in Bihar is 2.90%, while the national rate is 3.16%
  • Goods and services in Bihar are more affordable on average
  • Data is based on 26 essential categories of daily use
  • Helps in policy planning, budgeting, and economic forecasting

FAQs

What is the Consumer Price Index (CPI)?

CPI is a measure that tracks changes in the average price of key goods and services over time.

Why is Bihar’s inflation rate lower?

Because the availability and pricing of daily essentials are more stable and accessible in the state.

What period does this data cover?

The latest figures are for April 2025, released by the Ministry of Statistics.

How does a lower CPI benefit people?

It means people are spending less on essentials, allowing for better savings and spending on other needs.

Is this good for Bihar’s economy?

Yes. Lower inflation boosts purchasing power and helps build a more stable economic environment.