Rural Inflation Rises Despite Food Deflation

Retail inflation for farm and rural workers rose in August as per the Labour Ministry. The Consumer Price Index for agricultural and rural labourers saw increases, despite food inflation showing contractions. Data was compiled from 787 villages across 34 states/UTs, reflecting growth concerns.

Retail inflation for farm and rural workers saw a noticeable rise in August, according to the Labour Ministry's latest data released on Thursday.

The All-India Consumer Price Index for agricultural labourers climbed by 1.03 points to reach 136.34, while the index for rural labourers increased by 0.94 points to 136.60 in August 2025. Despite these hikes, food inflation showed a contraction, with agricultural labourers and rural labourers experiencing a food deflation of 0.55 per cent and 0.28 per cent, respectively.

The data, covering 787 sample villages across 34 states and Union Territories, raises concerns about growing inflationary pressures on India's rural economy, even as some food prices dip.