Synopsis: India’s rural and agricultural inflation showed further relief in September as both indices slightly dipped, indicating moderation in food and fuel prices. Updated statistical methods and broader data coverage have improved inflation tracking accuracy across the nation.
The Ministry of Labour and Employment’s latest data reveals a continued easing of inflationary pressure for India’s agricultural and rural labourers in September. The year-on-year inflation rate for agricultural labourers (AL) fell to -0.07%, while that for rural labourers (RL) stood at 0.31%.
According to the report, the All-India Consumer Price Index for agricultural labourers decreased by 0.11 points to 136.23, and for rural labourers, it declined by 0.18 points to 136.42. The Food Index, a key indicator of daily essentials, dropped by 0.47 points (AL) and 0.58 points (RL), signalling cheaper food prices for India’s working population.
These figures are derived from a comprehensive survey covering 787 villages across 34 states and union territories. The new base year of 2019=100 ensures that the indices better reflect current consumption trends.
A significant methodological improvement includes the use of the Geometric Mean (GM) instead of the Arithmetic Mean (AM). This change helps to reduce volatility and offers a more stable representation of price movements. Furthermore, the updated classification aligns with COICOP-2018 (Classification of Individual Consumption by Purpose), bringing India’s inflation tracking in line with global standards.
Meanwhile, broader indicators of inflation also show a cooling trend. The Wholesale Price Index (WPI) inflation eased to 0.13% in September, down from 0.52% in August, while the Consumer Price Index (CPI) dropped to an eight-year low of 1.54%, reflecting the overall decline in food and fuel costs.
Economists suggest this moderation could benefit rural households and the agricultural sector, especially ahead of the festive and sowing seasons. With stable prices and improved methodologies, India’s inflation management appears to be moving in the right direction — offering relief to millions dependent on rural livelihoods.
Disclaimer: The information provided in this article is based on official data released by the Ministry of Labour and Employment and the Ministry of Commerce & Industry. The views and interpretations are for informational purposes only and should not be considered financial advice.
