New Delhi witnessed a significant relief for agricultural and rural laborers as food inflation dipped into negative territory in December. The All-India Consumer Price Index for Agricultural Laborers (CPI-AL) stood at a mere 0.04 percent year-on-year, while for Rural Laborers (CPI-RL), it was 0.11 percent, according to the Ministry of Labour and Employment.
Food inflation specifically clocked in at -1.8 percent for agri workers and -1.73 percent for rural workers. This deflationary trend in food prices stems from robust production increases, easing the burden on essential commodities that form the bulk of these households’ expenses.
For India’s most vulnerable populations, who spend a lion’s share of their income on food, this development is a game-changer. It translates to more purchasing power, allowing families to afford better nutrition and other necessities, ultimately uplifting living standards in rural heartlands.
The Labour Bureau, under the ministry, revamped its indexing methodology this year. From June, the base year shifted to 2019=100, drawing data from 787 villages across 34 states and union territories. This new CPI-AL and CPI-RL series replaces the outdated 1986-87=100 benchmark, incorporating expanded coverage, refined methodologies, and broader representativeness for greater accuracy.
Broader economic indicators also paint a cooling inflation picture. Retail inflation eased to 1.33 percent in December from 0.71 percent in November. Wholesale price inflation flipped to 0.83 percent from -0.32 percent, driven by rises in manufactured goods and minerals.
Looking ahead, the Reserve Bank of India projects retail inflation around 2 percent for FY26, buoyed by GST reductions and sustained softening in food prices. This trajectory signals stability, fostering consumer confidence and economic growth.
As rural economies stabilize, policymakers eye sustained agricultural productivity to keep inflation in check, ensuring inclusive prosperity across India’s vast countryside.