Is Food Inflation for Farm and Rural Labourers in the Negative Zone for August?

Synopsis
Key Takeaways
- Inflation rates: CPI-AL at 1.07%, CPI-RL at 1.26%.
- Negative food inflation: Agricultural at (-) 0.55%, Rural at (-) 0.28%.
- Relief for vulnerable segments: Increased purchasing power.
- Updated CPI base year: Revised to 2019=100.
- Expansion of sample size: Data from 787 villages across 34 states.
New Delhi, Sep 19 (NationPress) The annual inflation rates based on the all-India consumer price index for agricultural labourers (CPI-AL) and rural labourers (CPI-RL) for August were recorded at 1.07 percent and 1.26 percent, respectively, according to data released by the Ministry of Labour & Employment on Thursday.
The food inflation for agricultural and rural labourers remained in the negative territory at (-) 0.55 percent and (-) 0.28 percent, respectively, as food prices decreased during the month due to improved production.
The inflation rates for agricultural and rural labourers were slightly higher than the 0.77 percent and 1.01 percent recorded in July. This marks a decline in inflation rates for nine consecutive months until July, providing much-needed relief to these vulnerable groups adversely affected by rising prices. This situation also results in more disposable income for these workers, enabling them to purchase a broader array of goods and enhancing their standard of living.
The Labour Bureau, part of the Ministry of Labour & Employment, updated the base year for the Consumer Price Index Numbers for Agricultural Labourers and Rural Labourers to 2019=100 since June this year. These indices are derived from data collected from 787 sample villages spread across 34 States and Union Territories.
The newly developed CPI – AL & RL series (Base: 2019=100) replaces the previous 1986-87=100 series.
The revised series significantly expands the scope and coverage while incorporating numerous methodological enhancements to strengthen the reliability of the indices.
Prices of PDS items are now calculated using the admissibility concept instead of the availability concept used in the old series. The revised series encompasses 34 states and Union Territories compared to 20 in the previous series, with price data collected from 787 sample villages instead of 600, and it includes 150–200 items compared to 65–106 in the old series.