Retail Inflation for Farm, Rural Workers Eases in December Due to Low Food Prices

Retail inflation for farm and rural workers eased to 3.25 per cent and 3.34 per cent, respectively, in December, mainly due to lower prices of certain food items. “Point to point rate of inflation based on the CPI-AL (Consumer Price Index-Agricultural Labourers and CPI-RL (rural labourers) decreased to 3.25 per cent and 3.34 per cent in December 2020 from 6 per cent and 5.86 per cent respectively in November 2020,” a labour ministry statement said.

According to the statement, inflation based on the food index of CPI-AL and CPI-RL is at (+) 2.97 per cent and (+) 2.96 per cent, respectively, in December 2020. Among states, the maximum decrease in the consumer price index numbers for agricultural labourers and rural workers was experienced by Gujarat and West Bengal (-20 points each) mainly due to the fall in prices of gur, onion, green chillies, vegetables and fruits etc.

On the contrary, the maximum increase in the consumer price index numbers for agricultural labourers and rural workers was experienced by Meghalaya (+2 points and +3 points, respectively) following the rise in prices of pulses, mustard oil, fish dry, vegetables and fruits, firewood, plastic shoes and bus fare etc. The fall or rise in the index varied from state to state. In the case of agricultural labourers, it recorded a decrease of 1 to 20 points in 18 states and an increase of 1 to 2 points in two states.

Tamil Nadu with 1,253 points topped the index table whereas Himachal Pradesh with 823 points stood at the bottom. In the case of rural workers, it recorded a decrease of 1 to 20 points in 18 states and an increase of 1 to 3 points in two states.

Tamil Nadu with 1,236 points topped the index table, while Bihar with 870 points stood at the bottom. The all-India consumer price index numbers for agricultural labourers and rural workers for December 2020 decreased by 13 and 12 points, respectively, to stand at 1,047.

The major contribution towards the fall in the general index of agricultural labourers and rural workers came from food with (-) 14.40 points and (-) 13.73 points, respectively, as prices of pulses, onion, potato, cauliflower, brinjal etc declined. “The inflation based on CPI-AL and RL has dipped to 3.25 per cent and 3.34 per cent which is driven by lower food inflation mainly on account of decline in prices of pulses, onion, potato, cauliflower, brinjal etc,” Labour Minister Santosh Gangwar said in the statement.

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