Rising food prices increase CPI for farm workers, rural labourers this August
The primary driver of the CPI increase for both AL and RL was the food group, contributing 8.38 and 7.69 points, respectively
By Anoushka Caroline Williams Published on 23 Sep 2023 4:30 AM GMT
Representational Image
Hyderabad: The Consumer Price Index (CPI) for Agricultural Laborers (AL) and Rural Laborers (RL) in India witnessed an increase in August 2023, driven primarily by rising food prices. The Consumer Price Index measures the change in prices paid by households for goods and services. It is an index used to calculate the retail inflation in the country.
This data article delves into the specifics of this inflation trend and its implications.
General index increase
In August 2023, the CPI-AL increased by nine points, reaching 1224, while the CPI-RL rose by eight points to reach 1234. A rise in CPI can strain the budgets of consumers, particularly those with lower incomes. This can reduce their purchasing power and potentially lead to a decrease in their standard of living.
These indices, based on the 1986-87=100 base, reflect the cost of living for agricultural and rural labourers in India.
Food prices surge
The primary driver of the CPI increase for both AL and RL was the food group, contributing 8.38 and 7.69 points, respectively.
Key factors behind this surge were the rising prices of essential items such as rice, wheat atta, pulses, milk, meat-goat, sugar, gur (jaggery), chillies (dry and green), turmeric, garlic, onion, and mixed spices.
State-wise variation
The rise in the CPI varied across Indian states. For agricultural labourers, it ranged from a 2 to 19 point increase in 20 states, with Tamil Nadu topping the index at 1423 points and Himachal Pradesh recording the lowest at 942 points.
For rural labourers, the increase ranged from 2 to 18 points in 20 states, with Andhra Pradesh leading at 1412 points and Himachal Pradesh at the bottom with 1003 points.
Maximum inflation
Meghalaya experienced the highest inflation increase for agricultural labourers with 19 points, while Gujarat and Meghalaya both recorded an 18-point increase for rural labourers.
Factors contributing to these spikes included elevated prices of rice, pulses, beef, groundnut oil, onion, green/dry chillies, firewood, and bus fares, among others.
Inflation rates
The point-to-point rate of inflation based on the CPI-AL and CPI-RL stood at 7.37 per cent and 7.12 per cent in August 2023, showing a slight decline from July 2023 figures of 7.43 per cent and 7.26 per cent, respectively.
Compared to the same period the previous year, these rates were 6.94 per cent and 7.26 per cent.
Food inflation
Specifically, food inflation was at 8.89 per cent for CPI-AL and 8.64 per cent for CPI-RL in August 2023. This was a marginal change from July 2023 figures of 8.88 per cent and 8.63 per cent, respectively.
When compared to the same month in the previous year, food inflation had increased from 6.16 per cent to 8.89 per cent for CPI-AL and from 6.21 per cent to 8.64 per cent for CPI-RL.
The rise in the Consumer Price Index for Agricultural and Rural Laborers in August 2023, fuelled by increasing food prices, emphasises the ongoing challenge of inflation in India. As the cost of essential items continues to climb, the impact on the livelihoods of labourers across the country becomes increasingly significant.
The release of the September 2023 CPI data on October 20 will provide further insights into this economic trend.
