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Retail inflation for industrial workers moderated to 2.15 per cent in the month of July, as compared to 7.54 per cent in the same month last year, according to the latest data released by the Labour Ministry on Monday. 

The year-on-year inflation for June 2024 was 3.67 per cent as compared to 5.57 per cent in June 2023.

The Consumer Price Index-Industrial Workers (CPI-IW) has been steadily declining since February this year and was 3.87 per cent in April 2024, figures compiled by the Labour Ministry showed.

The all-India CPI-IW for July 2024 increased by 1.3 points and stood at 142.7, from 141.4 in June.

The fuel and light and clothing and footwear segments remained flat in July as compared to June. The food and beverages group increased to 150.4 points in July from 148.7 points in June this year. The Labour Bureau has been compiling the data on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country.

Meanwhile, the retail inflation rate for farm and rural workers eased to 6.17 per cent and 6.20 per cent, respectively, in July. The retail inflation rates for farm and rural workers were 7.02 per cent and 7.04 per cent, respectively, in June this year, according to the Labour Ministry statement.

The All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and for rural labourers (CPI-RL) registered an increase of 10 points each in July, reaching 1,290 and 1,302, respectively, the statement said.

The ease in inflation for rural labour comes as a welcome sign as it leaves more money in the hands of the workers to improve their living standards. This is also the first time in five years that the inflation rate has fallen below the RBI’s medium-term target of 4 per cent.