Inflation burden eases for farm and rural labourers
The All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) for October declined to 5.96 per cent and 6 per cent, respectively, compared to 7.08 per cent and 6.92 per cent in the same month last year, according to figures released by the Ministry of Labour and Employment on Monday.
The inflation for agricultural and rural labourers for October was also lower than the corresponding figures for September 2024, which were 6.36 per cent for CPI-AL and 6.39 per cent for CPI-RL.
The easing of the inflation burden for both agricultural and rural labourers comes as a welcome relief for these vulnerable segments that are hit hardest by spiralling prices. It also leaves more money in their hands to buy a wider range of goods, leading to a better lifestyle. The decline also comes in the backdrop of an increase in India’s overall retail price inflation, including the urban areas, which rose to 6.21 per cent in October as higher prices of food items such as vegetables spiked during the month.
Labourers in rural areas are not affected by soaring vegetable prices in the urban markets. The retail inflation has increased from 5.49 per cent recorded in September as the prices of vegetables surged by as much as 42.18 per cent in October as the late withdrawal of the monsoon this year resulted in damage to crops and reduced supply in the market.
RBI Governor Shaktikanta Das said last week: “India’s growth story is still intact. Inflation is on the declining path, but we cannot overlook the significant risks in outlook. This risk cannot be underestimated."
The RBI Governor was optimistic about the outlook for the economy, observing that "the balance between inflation and growth is well poised".
The Reserve Bank of India (RBI) on Friday slashed the cash reserve ratio (CRR) for banks by 0.5 per cent to make more funds available for lending to spur economic growth but kept the key policy repo rate unchanged at 6.5 per cent with an eye on inflation. The CRR cut will infuse Rs 1.16 lakh crore into the banking system and bring down market interest rates.
