Retail inflation for farm workers decreased to 5.96% in August, while inflation for rural labourers fell to 6.08%. These figures compare to 6.17% and 6.20%, respectively, recorded in July.
The All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) each increased by 7 points in August, reaching levels of 1297 and 1309, up from 1290 and 1302 in July.
“The year-on-year inflation rates based on CPI-AL and CPI–RL for this month (August 2024) were recorded at 5.96 per cent and 6.08 per cent, compared to 7.37 per cent and 7.12 per cent in August, 2023. The corresponding figures for July, 2024 were 6.17 per cent for CPI-AL and 6.20 per cent for CPI-RL,” a labour ministry statement said.
Meanwhile, the Reserve Bank of India (RBI) noted in its September bulletin that food price volatility poses a contingent risk, even as overall retail inflation remained below the 4% target for the second consecutive month in August. The article indicated that household consumption is expected to accelerate in the second quarter due to easing headline inflation, with a revival in rural demand already underway.
“Consumer price index (CPI) inflation came in below the Reserve Bank’s target for the second consecutive month in August, although in light of the recent experience, food price volatility remains a contingent risk,” said the article on the state of the economy.
It further said global economic activity is slowing down, while the pace of disinflation remains sluggish, provoking caution among monetary policy authorities. In India, strong domestic factors—private consumption and gross fixed investment—along with positive net exports, supported GDP growth in the first quarter of the fiscal year.
The RBI clarified that the views expressed in the bulletin are those of the authors and do not necessarily reflect the central bank’s stance.