New Delhi, Feb 16 (IANS): The retail inflation in Delhi and Jammu and Kashmir is double that of the national average of 3.17 per cent recorded for January, probably due to demonetisation, an industry organisation said on Thursday.

"The retail inflation may have been hovering at quite a reasonable level of 3.17 per cent for January, on an all-India basis, but there is no respite for people in Delhi along with a couple of other states," an Associated Chambers of Commerce and Industry of India (Assocham) analysis has noted. 

Some of the states were suffering the price rise at double the national average, with demonetisation leaving its possible impact, it added.

"Against the national average of 3.17 per cent, Delhi had to bear the inflation rate, measured by the Consumer Price Index (CPI), at 6.32 per cent, while it was 7.01 per cent for Jammu and Kashmir and 5.92 per cent for Himachal Pradesh," the analysis said.

"The CPI inflation for January on an all-India level is much lower at 3.17 per cent than the one measured on the Wholesale Price Index at 5.25 per cent," Assocham President Sandeep Jajodia said. 

"One of the plausible reasons could be the impact of demonetisation on the supply chain," he added.

But, what is more surprising is the huge gap between retail inflation in Delhi and the national average, Jajodia said.

"This was not expected at least in Delhi, especially when the phenomenon was not seen even in the neighbouring states of Haryana, Uttar Pradesh and Punjab, though it was slightly over four per cent in these states," the chamber said.

Demonetisation would have led to supply chain disruption more in the national capital than other states, it added.

The rural areas of Jammu and Kashmir and Himachal Pradesh witnessed a high rate of price rise in January year-on-year, it said.

In Jammu and Kashmir rural and far flung areas, the CPI inflation was 9.08 per cent and for the similar areas of Himachal Pradesh it was 6.17 per cent, Assocham added.