All India CPI For Agri, Rural Labourers Up 7 Points In August: Govt
Consumer Price Index (CPI) for agricultural and rural labourers increases by seven points, with inflation rates easing year-on-year
The All-India consumer price index for agricultural labourers (CPI-AL) and rural labourers (CPI-RL) saw an increase of 7 points each in August 2024, bringing the indices to 1297 for agricultural and 1309 for rural labourers, according to data released by the Ministry of Labour and Employment.
Despite the rise in the general index, inflation based on the CPI-AL and CPI-RL moderated compared to last year. The year-on-year inflation rate for CPI-AL was recorded at 5.96 per cent, and for CPI-RL at 6.08 per cent, a significant drop from 7.37 per cent and 7.12 per cent, respectively, in August 2023. However, these rates showed only a slight decrease from July 2024, when inflation was 6.17 per cent for agricultural labourers and 6.20 per cent for rural labourers.
The data reflects a marginal increase across various groups for both agricultural and rural labourers. The food index rose to 1240 for agricultural labourers and 1247 for rural labourers, while the index for fuel and light increased to 1357 and 1348, respectively. Other notable rises were seen in the clothing, bedding, and footwear index, which climbed to 1310 for agricultural labourers and 1371 for rural labourers.
Retail Inflation
India's retail inflation fell in July to a near five-year low, as food prices eased from previous highs due to a base effect, government data showed on Monday. Annual retail inflation was 3.54 per cent in July, down from 5.08 per cent in June. The latest print is the lowest since August 2019.
Retail inflation fell below the Reserve Bank of India's (RBI) target of 4 per cent largely due to the high-base effect, suggesting the slower pace of price rises was temporary. The inflation rate was last recorded below 4 per cent in September 2019.
Prices of food, which account for nearly half of the retail inflation, rose 5.42 per cent from last year in July, compared to a 9.36 per cent rise in June. Vegetable prices rose 6.83 per cent year-on-year in July against 29.32 per cent in the previous month.
The RBI Governor Shaktikanta Das said the country's food inflation remained "stubbornly" high and it was important for the monetary policy to stay the course in bringing inflation down towards its medium-term target of 4 per cent.
The RBI expects inflation to average 4.4 per cent in the July-September period and 4.7 per cent in the October-December period. Core inflation, which strips out volatile food and energy prices, continued to hover around 3 per cent and was estimated between 3.35 per cent and 3.40 per cent in July from 3.08 per cent and 3.14 per cent in June.
