India’s retail inflation for agricultural and rural labourers remained largely muted in December 2025, with headline indices showing a marginal decline and food inflation staying in negative territory,
according to official data released on Wednesday.
According to the latest data from the Ministry of Labour & Employment, the All-India Consumer Price Index for Agricultural Labourers (CPI-AL) fell by 0.28 points to 137.12 in December 2025 from 137.40 in November. Similarly, the Consumer Price Index for Rural Labourers (CPI-RL) declined by 0.27 points to 137.03, compared with 137.30 in the previous month.
The indices, with a base year of 2019=100, are compiled by the Labour Bureau using price data collected from 787 sample villages across 34 States and Union Territories.
Food inflation remains negative
Food prices continued to exert a downward pull on overall inflation. The food index declined by 0.70 points for both agricultural and rural labourers during the month. As a result, food inflation in December 2025 stood at -1.80% for agricultural labourers and -1.73% for rural labourers, indicating that food prices were lower than a year ago.
On a year-on-year basis, headline inflation showed a mild uptick. Inflation for agricultural labourers rose to 0.04% in December 2025, compared with -0.66% in November, while inflation for rural labourers increased to 0.11% from -0.47% in the previous month.
Mixed movement across expenditure groups
Group-wise data showed divergent trends. While the food and non-alcoholic beverages index declined in December, other components such as fuel and light, pan, tobacco and intoxicants, clothing and footwear, and the miscellaneous category registered modest increases for both agricultural and rural labourers.
Fuel and light inflation edged up, reflecting higher energy-related costs in rural areas, while clothing and footwear prices also saw a slight rise, the data showed.
State-wise trends vary
At the state level, the CPI data showed wide variations. States such as Andhra Pradesh, Telangana, Tamil Nadu and Sikkim recorded an increase in both CPI-AL and CPI-RL in December, while Bihar, Uttar Pradesh, West Bengal and Odisha saw a decline compared with November.
For Delhi, CPI-AL data was not reported, while CPI-RL slipped to 131.60 from 132.91 in November. Among northeastern states, Mizoram continued to record one of the highest index levels, while Tripura saw a sharp monthly decline.
Why this data matters
The CPI-AL and CPI-RL numbers are key indicators of inflationary trends faced by rural labourers and agricultural workers. They are also closely tracked for policy formulation, welfare schemes, and wage indexation in rural employment programmes.
The December 2025 data suggests that rural inflation pressures remain contained, largely due to easing food prices, even as non-food components show mild firming.
