Ranchi, Dec. 6: Prices of retail goods and services in the state capital are rising faster than in Mumbai, New Delhi and the national average.

As many as 25 cities, of the 59 monitored every month by the Central Statistical Organisation (CSO), recorded higher prices in October this year than the national average, which moved 4 percentage points higher than the corresponding month last year. Asansol in West Bengal recorded the highest movement at 7.8 points, with Ranchi following close behind with 6.6.

As many as 34 cities actually recorded a lower growth than the national average in the consumer price index (CPI) for urban non-manual employees. Guwahati (3.9), Bangalore (3.2), Bhopal (1.8), Shimla (2.8), Muzaffarpur (2.6) and Ahmedabad (4) are among the cities where prices have not risen as dramatically as in Ranchi. The higher prices do not make Ranchi a costlier place to live in than the metros or other cities. But compared to this time last year, it has certainly become costlier.

The CPI-UNME is deemed a more realistic measure of cost of living than the wholesale price index, because it monitors prices of goods and services which are commonly used by urban households every month. Food, beverages, tobacco, fuel and electricity charges are among the consumables monitored by CSO.

Other cities where the rise in CPIUNME was higher than 5 per cent were Hubli (6.5), Chandigarh (6), Gulbarga (5.9), Allahabad (5.7), Kohima (5.6), Hyderabad (5.5), Thiruvananthapuram (5.4) and Calcutta (5.4). Higher cost of an inefficient public transport system, high rent due to acute shortage of housing units and the ability of traders to sell goods at higher prices, almost always at the MRP (maximum retail price), are some of the reasons for the abnormally high cost of living.

Renting a house in the capital is an expensive proposition. President of the Federation of Jharkhand Chambers of Commerce and Industries (FJCCI), Vishnu Budhia, believes that the availability of land does not match the population, with a large section moving in after the formation of Jharkhand.