New Delhi: The year-on-year inflation rates based on the all-India consumer price index for agricultural labourers (CPI-AL) and rural labourers (CPI-RL) for March this year eased to 3.73 per cent and 3.86 per cent, respectively — compared to 7.15 per cent and 7.08 per cent in March 2024 — bringing respite to poor households, according to figures released by the Ministry of Labour and Employment on Wednesday.
The easing of the price spiral was also evident in comparison to the previous month of February when the corresponding figures stood at 4.05 per cent for CPI-AL and 4.1 per cent, 4.61 per cent for CPI-RL.
The inflation rate for agricultural and rural labourers has been steadily declining over the last six months. This comes as a welcome relief for these vulnerable segments that are hit hardest by the increasing prices. It also leaves more money in their hands to buy a wider range of goods, leading to a better lifestyle.
The decline in inflation for farm and rural workers also come in the backdrop of a fall in the country’s overall retail inflation to 3.34 per cent in March this year, compared to the same month of the previous year, the lowest level since August 2019, according to figures released by the Ministry of Statistics earlier this month.
Food Inflation during March slowed to 2.69 per cent which is the lowest level since November, 2021.
The significant decline in headline inflation and food inflation during the month of March 2025 is mainly attributed to decline in inflation of vegetables, eggs, pulses, meat and fish cereals and milk, according to the official statement.
Retail inflation in the country has been on a declining trend in recent months. The Reserve Bank’s Monetary Policy Committee has reduced its inflation forecast for 2025-26 to 4 per cent from 4.2 per cent earlier as the “outlook for food inflation has turned decisively positive,” RBI Governor Sanjay Malhotra said last week.
“Headline inflation moderated during January-February 2025 following a sharp correction in food inflation. The outlook for food inflation has turned decisively positive. The uncertainties regarding rabi crops have abated considerably and the second advance estimates point to a record wheat production and higher production of key pulses over that last year,” the RBI Governor said.
He observed that along with robust kharif arrivals, this is expected to set the stage for a durable softening of food inflation.
“The sharp decline in inflation expectations in our latest survey for three months and one year ahead would also help anchor inflation expectations, going ahead,” he pointed out.
Furthermore, the fall in crude oil prices augurs well for the inflation outlook. Concerns on lingering global market uncertainties and recurrence of adverse weather-related supply disruptions, however, pose upside risks to the inflation trajectory, the RBI Governor noted.
(IANS)
