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From A-Z, Karnataka sees a series of price hikes

As per data released by the Union Ministry of Statistics & Programme Implementation, inflation based on Consumer Price Index was at 4.49% in Karnataka, in February 2025 -- above the national average of 3.61%.

April 11, 2025 / 15:30 IST
Congress leader Rahul Gandhi, along with Karnataka CM Siddaramaiah and Deputy CM DK Shivakumar.

Congress leader Rahul Gandhi, along with Karnataka CM Siddaramaiah and Deputy CM DK Shivakumar.

The Congress-led government, which came to power in Karnataka with a thumping majority (135 out of 224 seats) in May 2023, riding on five poll guarantees, is now facing growing public ire over a series of price hikes.

Opposition parties, like the Bharatiya Janata Party (BJP) and the JD (S) — are planning statewide protests again the price hikes.

The hikes span across sectors — from diesel and electricity to Metro and bus fares, to milk prices, water bills, and even garbage collection fee. Adding to the burden, private schools have increased academic fees and transportation charges, dealing a blow to the poor and middle class, already reeling from inflation.

Also readOf guarantees & hikes: Karnataka govt walks a tightrope amid calls to limit benefits

While the Union government has increased LPG prices and toll charges, the Bengaluru Metro Rail Corporation Ltd (BMRCL) — a joint venture between the Centre and the state — hiked Metro fares by up to 71 percent. Since then, both the BJP and the Congress have been engaged in a blame game over who is responsible for the price inflation.

According to data released by the Union Ministry of Statistics & Programme Implementation, inflation based on Consumer Price Index (CPI) stood at 4.49 percent in Karnataka in February 2025, significantly higher than the national average of 3.61 percent.

BJP state president B Y Vijayendra has accused the Congress-led Karnataka government of implementing a 'price hike guarantee' instead of fulfilling its welfare guarantees. The BJP has launched a 16-day ‘Janakrosha’ (public anger) rally across Karnataka, protesting the recent hikes in the prices of essential commodities, the reservation for Muslims in government tenders below Rs 2 crore, and what it calls the Congress government’s misgovernance.

In response, the Congress has announced a state-wide protest on April 17, targeting the Centre over the rising cost of living, particularly the hike in LPG rates.

Karnataka deputy CM and KPCC president D K Shivakumar said the state has allocated Rs 52,000 crore annually to implement the five guarantees. Releasing a list of items — from four-wheelers to household goods and food grains — Shivakumar claimed their prices have soared since 2014.

Separately, the JD(S) will hold a massive protest on April 12 at Freedom Park in Bengaluru under its campaign 'Sakappa Saaku Congress Sarkara' (Enough is Enough, Congress Government). The protest, led by Union minister HD Kumaraswamy, will focus on price hikes and alleged corruption in the state administration.

The Federation of Karnataka State Lorry Owners and Agents Association has announced an indefinite strike from April 15, demanding a rollback of the diesel price hike, the cessation of toll collection on state highways, and the removal of checkposts.

Also, readKarnataka's bucket of woes: A listless Congress, divided BJP, citizens burdened by poor infra and price hikes

Ironically, in March 2025,  Karnataka legislature passed two Bills under the Salaries, Pensions and Allowances (Amendment) Bill, 2025, doubling the salaries of MLAs and MLCs and raising the pay of the Chief Minister and Ministers. MLAs and MLCs will now receive Rs 80,000 per month, the Chief Minister Rs 1.5 lakh, and Ministers Rs 1.25 lakh. These hikes are expected to cost the State exchequer Rs 62 crore annually.

Christin Mathew Philip is an Assistant editor at moneycontrol.com. Based in Bengaluru, he writes on mobility, infrastructure and start-ups. He is a Ramnath Goenka excellence in journalism awardee. You can find him on Twitter here: twitter.com/ChristinMP_
first published: Apr 11, 2025 03:29 pm

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