In a welcome breather for millions of farm and village workers, India’s food inflation for these groups turned negative last December. Official data from the Labour and Employment Ministry reveals the CPI-AL at 0.04 percent and CPI-RL at 0.11 percent on a yearly basis.
The standout story lies in food baskets: -1.8 percent deflation for agricultural laborers and -1.73 percent for rural ones. Bumper harvests and higher output have driven down prices of staples like grains, vegetables, and dairy, directly benefiting low-income households.
This isn’t just numbers—it’s real-world impact. With food accounting for over half their budgets, negative inflation means more money left for education, healthcare, and savings. It’s a vital boost amid ongoing rural challenges like wage stagnation and climate uncertainties.
Marking a methodological upgrade, the ministry’s Labour Bureau adopted a 2019=100 base from June this year. Sourced from comprehensive village-level surveys in 787 locations spanning all states and UTs, the updated indices offer sharper insights than the archaic 1986-87 series.
Enhanced scope, new data collection techniques, and methodological tweaks make these metrics more robust and reflective of today’s consumption patterns.
On the macro front, retail CPI rose modestly to 1.33 percent from November’s 0.71 percent. WPI turned positive at 0.83 percent, up from -0.32 percent, thanks to manufacturing and mineral price upticks.
RBI forecasts hover at 2 percent retail inflation for FY26, supported by tax cuts and abundant food supplies. Such controlled inflation paves the way for monetary easing, spurring investments and job creation in rural economies.
