August 2025 CPI: Agricultural and Rural Labourers See Moderate Rise

The Labour Bureau, under the Ministry of Labour & Employment, has released the Consumer Price Index Numbers for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) for August 2025. These indices, with 2019 as the base year (2019=100), reflect inflation trends and are critical for adjusting minimum wages and social security benefits for rural India.

📈 Key Highlights – August 2025:

MetricCPI-ALCPI-RL
General Index136.34 ↑136.60 ↑
Change from July 2025+1.03 points+0.94 points
Food Index137.07 ↑137.38 ↑
Change in Food Index (Monthly)+1.39 points+1.29 points
Year-on-Year Inflation1.07%1.26%
Food Inflation (YoY)-0.55%-0.28%

➡️ Despite a rise in the food index from July, year-on-year food inflation remained negative, indicating that food prices are still lower compared to August 2024, though they’ve risen from the previous month.

📊 Group-Wise Index Comparison (All-India)

GroupCPI-AL (Aug)CPI-RL (Aug)
General Index136.34136.60
Food & Non-Alcoholic Beverages137.07137.38
Pan, Tobacco & Intoxicants130.56129.49
Fuel & Light121.96123.95
Clothing & Footwear145.51146.13
Miscellaneous138.26137.67

📝 Observation: Most categories saw a marginal increase. The highest increase was in Food and Clothing, indicating mild upward pressure on rural living costs.

🌐 State-Wise Index Movements (Selected States):

StateCPI-AL (Jul)CPI-AL (Aug)CPI-RL (Jul)CPI-RL (Aug)
Bihar131.57133.51 ↑131.19133.20 ↑
Andhra Pradesh141.33141.96 ↑141.50142.12 ↑
J&K144.93146.62 ↑145.32146.96 ↑
West Bengal133.73136.80 ↑133.01136.10 ↑
Uttar Pradesh137.67138.29 ↑137.63138.21 ↑
Gujarat138.31137.30 ↓137.96137.02 ↓
Manipur144.68144.23 ↓142.63142.24 ↓

📍 Note: Most states registered a rise in CPI, except for a few like Gujarat and Manipur, where the index slightly dropped.

📌 What Is CPI-AL & CPI-RL?

  • CPI-AL (Agricultural Labourers): Measures retail inflation based on the consumption pattern of landless or marginal rural agricultural workers.
  • CPI-RL (Rural Labourers): Includes non-agricultural rural workers as well (e.g., construction, forestry).

These indices influence:

  • Revision of minimum wages
  • Cost of living adjustments
  • Rural development policy and inflation targeting

🧾 Conclusion:

The rise in CPI-AL and CPI-RL for August 2025 reflects mild inflationary pressures, particularly in food and clothing sectors. Although the overall inflation remains modest, the month-on-month uptick suggests that living costs in rural areas are inching upwards, an important consideration for wage and welfare policies.

RECENT UPDATES