Inflation for agricultural, rural labourers outpaces general retail inflation

Inflation for agricultural and rural labourers outpaced general retail inflation in September, reflecting the growing burden of rising prices on lower-income households in rural India, according to data released by the Labour Bureau.
The year-on-year Consumer Price Index (CPI) inflation rate for Agricultural Labourers (AL) rose to 6.30% in September from 5.18% in August. For Rural Labourers (RL), inflation increased to 5.98% from 4.83% in the previous month, according to sources. In September 2025, CPI inflation for AL and RL stood at -0.07% and 0.31%, respectively.Both inflation rates were higher than the headline retail inflation of 5.54% in September. Rural inflation stood at 6.08%, compared with 4.88% in urban areas, indicating greater price pressures in rural regions.On a month-on-month basis, prices for agricultural and rural labourers rose by 1% each in September, compared with a 0.7% increase in general retail prices.
Food inflation remained a major driver of the increase. Food inflation for agricultural labourers rose to 8.24% in September from 6.41% in August, while the rate for rural labourers increased to 7.84% from 5.97%. Both figures were higher than the general retail food inflation rate of 7.74% during the month.While CPI inflation for agricultural labourers has remained above general retail inflation for the past five months, September marked the first time this calendar year that inflation for rural labourers exceeded the headline rate.
The sustained rise in prices could weigh on rural demand as households face shrinking purchasing power. Rural consumers are already more pessimistic about the general economic situation, employment prospects, prices and their own incomes, according to the Reserve Bank of India's latest Rural Consumer Confidence Survey.Food inflation is expected to remain elevated in the near term due to the impact of a deficient and uneven monsoon and the El Niño weather phenomenon. Low reservoir levels also pose a risk to rabi crop production, potentially adding to food price pressures.The CPI indices for agricultural and rural labourers are used to revise minimum wages for these workers across states. The indices are compiled using price data collected from 787 sample villages across 34 states and Union Territories.

(Business Correspondent)