Retail inflation for farm, rural workers eases marginally in May

Retail inflation for farm and rural workers in May fell slightly to 8.4 per cent and 8.12 per cent, respectively, in May as compared with April this year, a labour ministry statement said on Friday.

"Point to point rate of inflation based on the CPI-AL (agriculture labourers) and CPI-RL (rural labourers) decreased to 8.40 per cent and 8.12 per cent in May 2020 from 8.80 per cent and 8.52 per cent, respectively in April 2020," the statement said.

Inflation based on food index of CPI-AL and CPI-RL is at 10.40 per cent and 10.21 per cent, respectively in May 2020.

The All-India Consumer Price Index Numbers for Agricultural Labourers and Rural Labourers (Base: 1986-87=100) for the month of May 2020 increased by 5 points and 6 points to stand at 1019 and 1025 points, respectively.

The major contribution towards the rise in general index of agricultural labourers and rural labourers came from food, with (+) 4.44 points and (+) 4.70 points, respectively, mainly due to rise in prices of rice, arhar, masur, ground nut oil, meat goat, poultry, vegetables and fruits etc.

The rise/fall in index varied from state to state.

In case of agricultural labourers, it recorded an increase of 2 to 19 points in 14 states and a decrease of 1 to 7 points in 5 states while it remained stationary for Rajasthan. Tamil Nadu with 1,208 points topped the index table whereas Himachal Pradesh with 788 points stood at the bottom.

In case of rural labourers, it recorded an increase of 1 to 18 points in 15 states and a decrease of 1 to 7 points in 5 states. Tamil Nadu with 1,194 points topped the index table whereas Himachal Pradesh with 838 points stood at the bottom.

Amongst states, the maximum increase in the consumer price index numbers for agricultural labourers and rural labourers was experienced by Karnataka (19 points and 18 points, respectively) mainly due to rise in the prices of rice,jowar, ragi, meat goat, poultry, vegetables and fruits, bidi, and barber charges etc.

On the contrary, the maximum decrease in the consumer price index numbers for agricultural labourers and rural labourers was experienced by Bihar state (-7 points each ) mainly due to fall in the prices of maize, onion, fruits & vegetables etc.

Labour Minister Santosh Gangwar has said that it is commendable that Labour Bureau is bringing out retail inflation and other sets of data during these challenging times.

He said the inflation numbers are expected to improve with more economic activities in coming days.

Labour Bureau, a wing of the Ministry of Labour and Employment, has been compiling consumer price index (CPI) numbers for agricultural labourers and rural labourers every month on the basis of the price data collected from 600 sample villages spread over 20 states by visiting personally to the designated outlets.

In view of the containment measures taken to limit the spread of Covid-19, the personal visit of the field staff was suspended from March 19, 2020 and prices were collected through electronic means of communication.

In the month of May 2020, the price data was received from 433 villages which were collected, to the extent possible, through personal visits and telephone calls.