SDG 1: No Poverty | SDG 8: Decent Work & Economic Growth
Institutions: Ministry of Labour & Employment
Rural households saw a mild drop in living costs in September 2025, according to new data from the Labour Bureau. The Consumer Price Index for Agricultural Labourers (CPI-AL) fell slightly to 136.23, while the Consumer Price Index for Rural Labourers (CPI-RL) edged down to 136.42 (base year 2019 = 100). These indices are based on field data from 787 villages across 34 States and UTs.
Year-on-year, inflation for farm workers turned marginally negative at –0.07 %, and for rural labourers it eased to 0.31 %. The Food Index, which captures the price of key staples and perishables, declined more sharply: –2.35 % (AL) and –1.81 % (RL), showing that falling food prices were the main driver of the overall cooling.
In contrast, prices rose modestly for fuel, clothing, and footwear, partly offsetting food-related relief. Among states, Mizoram and Jammu & Kashmir recorded the highest overall price levels, while Goa and Tripura saw the largest month-to-month changes.
The latest figures suggest that rural inflation pressures have subsided, which may ease pressure on wage revisions and subsidy budgets. However, persistently negative food inflation could also reflect weak rural purchasing power and subdued demand. Policymakers may use these indicators to re-align welfare programmes like MGNREGS and PM-KISAN toward improving incomes and consumption resilience rather than compensating for price shocks.
What are CPI-AL and CPI-RL? → These are monthly price indices released by the Labour Bureau, Ministry of Labour & Employment:
CPI-AL tracks changes in the cost of living for agricultural labour households whose main income comes from farm work.
CPI-RL does the same for rural households engaged in both farm and non-farm activities such as construction or services.
Both indices (base 2019 = 100) help adjust minimum wages, MGNREGS payments, and rural transfer schemes to inflation trends.
What is “negative inflation”? → Negative inflation (or deflation) means prices on average are lower than a year ago. This can relieve short-term household pressure but may also signal weak demand or falling farm-gate prices, potentially affecting rural incomes.
Follow the full news here: Rural Inflation Eases as Prices for Food Items Fall