Farm and rural households saw some financial relief in March as inflation continued its downward trend, according to data released by the Ministry of Labour and Employment on Wednesday. The year-on-year inflation based on the All-India Consumer Price Index for Agricultural Labourers (CPI-AL) eased to 3.73 per cent, while the index for Rural Labourers (CPI-RL) stood at 3.86 per cent. These figures mark a sharp decline from the 7.15 per cent and 7.08 per cent recorded in March last year.
The moderation in inflation was also evident on a month-on-month basis. In February, CPI-AL was recorded at 4.05 per cent and CPI-RL at 4.61 per cent. The sustained decline in inflation over the past six months comes as a welcome respite for low-income households, particularly those in rural areas, who have been disproportionately affected by price rises.
Lower inflation means rural workers now have more disposable income, improving their ability to afford essential goods and enhancing their overall quality of life.
This easing in rural inflation aligns with a broader trend seen across the country. India’s overall retail inflation fell to 3.34 per cent in March—its lowest level since August 2019—according to figures released earlier this month by the Ministry of Statistics.
Food inflation, in particular, dropped to 2.69 per cent in March, the lowest since November 2021. The decline is largely attributed to falling prices of vegetables, eggs, pulses, meat and fish, cereals, and milk, according to the official statement.
The Reserve Bank of India has also revised its inflation outlook. RBI Governor Sanjay Malhotra recently announced that the central bank’s Monetary Policy Committee has reduced the inflation forecast for 2025–26 to 4 per cent from the earlier projection of 4.2 per cent.
“Headline inflation moderated during January and February following a sharp correction in food prices,” Malhotra said. “The outlook for food inflation has turned decisively positive. Concerns over rabi crop output have eased considerably, and the second advance estimates point to record wheat production and higher pulse output compared to last year.”
He added that robust kharif arrivals are expected to further support this trend, paving the way for a sustained decline in food inflation. According to him, the recent sharp fall in inflation expectations—both three months and one year ahead—will also help keep future inflation in check.
Additionally, falling global crude oil prices are seen as a positive development for India’s inflation outlook. However, the RBI cautioned that global market uncertainties and potential weather-related supply disruptions remain as risks to the inflation trajectory.
-IANS
