All-India Consumer Price Index for Agricultural and Rural Labourers: December 2025
SDG 1: No Poverty | SDG 8: Decent Work and Economic Growth
Ministry of Labour & Employment
The Labour Bureau has released the All-India Consumer Price Index Numbers for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) for December 2025, utilizing the base year 2019=100. The data, aggregated from 787 sample villages across 34 States and Union Territories, reveals a marginal softening of inflationary pressures in the rural economy. The General Index for Agricultural Labourers decreased by 0.28 points to 137.12, while the index for Rural Labourers saw a 0.27-point decline, reaching 137.03. This monthly moderation was primarily driven by a significant 0.70-point drop in the Food Index for both categories, reflecting improved supply-side dynamics for essential commodities.
Inflation Dynamics and Sectoral Performance
Year-on-Year (YoY) Inflation: The annual inflation rate stood at 0.04% for AL and 0.11% for RL in December 2025, a shift from the negative inflation rates recorded in November.
Food Inflation: Food inflation remained in negative territory, recorded at -1.80% for AL and -1.73% for RL, indicating a deflationary trend in rural food prices compared to the previous year.
Group-wise Variations: While food prices eased, other segments saw marginal increases, including Pan, Tobacco and Intoxicants (up 0.57 points for AL) and Fuel and Light (up 0.37 points for AL).
Clothing and Footwear: This group maintained the highest index levels at 146.32 (AL) and 146.76 (RL), highlighting persistent price pressure in non-food essentials.
Regional Disparities: State-wise indices varied significantly, with Mizoram recording the highest index (149.31 for AL) and Goa the lowest (124.28 for AL).
What are ‘CPI-AL and CPI-RL’ and why are they vital for rural policy in India? CPI-AL and CPI-RL are specialized inflation indices that track the changes over time in the prices of a basket of goods and services consumed by agricultural and rural labour households. They are vital because they serve as the primary benchmark for revising minimum wages and determining Dearness Allowance (DA) for rural workers. Unlike the broader Consumer Price Index (CPI-Combined), these indices are heavily weighted toward food and local rural services, making them a precise tool for the government to measure the “cost of living” for India’s most economically vulnerable workers and to calibrate social protection schemes accordingly.
Policy Relevance
The stabilization of rural inflation is a critical prerequisite for reviving rural demand and ensuring the financial sustainability of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
Minimum Wage Calibration: The transition from negative to marginal positive General Inflation will require the Ministry of Labour to carefully adjust rural wage floors to maintain purchasing power.
Food Security Assessment: Continued deflation in the Food Index (-1.80% for AL) suggests that NFSA (National Food Security Act) interventions and seasonal harvests are effectively containing price volatility.
Mitigating Rural Distress: Monitoring state-level peaks, such as in Mizoram and Andhra Pradesh, allows the government to deploy localized market intervention schemes (MIS) to stabilize prices.
Incentivizing Non-Farm Work: The high index for Clothing and Footwear (146+) emphasizes the need for policy focus on local manufacturing under the PM-VIKAS scheme to reduce the cost of non-food essentials in rural areas.
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