Play all audios:
Retail inflation for agricultural and rural labourers eased marginally in April 2025, reflecting continued moderation in price pressures across India’s hinterland. According to the Ministry
of Labour and Employment, year-on-year inflation based on the Consumer Price Index for Agricultural Labourers (CPI-AL) fell to 3.48%, while the index for Rural Labourers (CPI-RL) stood at
3.53%. These figures compare with 3.73% and 3.86%, respectively, in March 2025.
On a month-to-month basis, both indices inched up by one point each in April. The CPI-AL rose to 1307, and the CPI-RL to 1320, from their March levels of 1306 and 1319, respectively.
The latest data also marks a sharp decline in rural inflation from a year ago. In April 2024, CPI-AL and CPI-RL inflation had stood at 7.03% and 6.96%, respectively—more than double the
current pace. The sustained easing reflects improved food price dynamics and base effects, especially in cereals and edible oils, which had driven up rural inflation during the 2022–2023
cycle.
Inflation for farm and rural workers has historically been volatile, closely tracking movements in food prices, fuel costs, and monsoon-linked supply shocks. During FY22 and FY23, rural
inflation surged as global commodity prices spiked and domestic food supply chains were disrupted post-pandemic. CPI-AL peaked at 7.7% in October 2022, while CPI-RL hovered around similar
levels.
The subsequent moderation began in late 2023, aided by government interventions such as increased buffer stock releases, fuel excise cuts, and stabilisation of global prices. Additionally,
inflation targeting by the Reserve Bank of India (RBI) helped rein in rural price expectations.
The CPI-AL and CPI-RL indices are used primarily for revising minimum wages and social sector payouts in rural India. Given the indices’ sensitivity to food prices—which have more than 60%
weight in the basket—the recent easing offers relief to millions of daily wage workers dependent on agriculture and informal employment.
With monsoon projections looking normal and foodgrain stocks remaining adequate, inflation in rural India is expected to stay subdued in the near term—though volatility cannot be ruled out
if geopolitical tensions flare or weather patterns disrupt sowing cycles.