The All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) for November this year declined to 5.35 per cent and 5.47 per cent respectively, compared to 7.37 per cent and 7.13 per cent in the same month last year, according to figures released by the Ministry of Labour and Employment on Monday.
The inflation for agricultural and rural labourers for November was also lower than the corresponding figures for October 2024 at 5.96 per cent for CPI-AL and 6.00 per cent for CPI-RL. This is the second consecutive month of slowing inflation as the figures for retail inflation in October were lower than September.
The easing of the inflation burden for both agricultural and rural labourers comes as a welcome relief for these vulnerable segments that are hit hardest by spiralling prices. It also leaves more money in their hands to buy a wider range of goods, leading to a better lifestyle.
The decline also comes in the backdrop of India’s retail price inflation based on the CPI index declining to 5.48 per cent in November as the increase in prices of food items eased during the month bringing relief to household budgets, figures released earlier this month showed.
The slowing inflation marks a reversal of the increasing trend in the previous two months when the inflation rate touched 6.21 per cent in October.
During November, a significant decline in inflation was observed in vegetables, pulses, sugar and confectionery, fruits, eggs, milk and products, spices, transport and communication subgroups, according to the official statement.
The easing in inflation is a welcome sign as it was the first time that the rate of retail inflation crossed the RBI’s upper limit of 6 per cent in October. The RBI is waiting for retail inflation to come down to 4 per cent on a durable basis before it can go in for an interest rate cut to propel growth.
The Reserve Bank of India (RBI) , in its latest monetary policy review slashed the cash reserve ratio (CRR) for banks by 0.5 per cent to make more funds available for lending to spur economic growth but kept the key policy repo rate unchanged at 6.5 per cent with an eye on inflation.
The CRR has been reduced from 4.5 per cent to 4 per cent which will infuse Rs 1.16 lakh crore into the banking system and bring down market interest rates.
The monetary policy decision maintains a delicate balance between controlling inflation and pushing up the growth rate in a slowing economy,
In his last monetary policy view, former RBI Governor Shaktikanta Das said, “India’s growth story is still intact. Inflation is on the declining path, but we cannot overlook the significant risks in the outlook. This risk cannot be underestimated.”
He was optimistic about the outlook for the economy, observing that “the balance between inflation and growth is well poised.”
(IANS)