Food inflation for farm and rural labourers stays in negative zone during December

January 21, 2026

New Delhi: According to data released by the Ministry of Labour and Employment on Wednesday, the annual inflation rate based on the All India Consumer Price Index for agricultural labourers (CPI-AL) and rural labourers (CPI-RL) in December 2025 was estimated at 0.04 percent and 0.11 percent, respectively.

Food inflation negative for agricultural and rural labourers

According to the data, food inflation for agricultural labourers and rural labourers remained negative, registering (-)1.8 percent and (-)1.73 percent, respectively. The main reason for the decline in food prices is attributed to increased production. This decline in inflation in recent months is being considered a major relief for these sections, who are most affected by rising prices.

New base year series for CPI-AL and RL implemented

The Labour Bureau, under the Ministry of Labour and Employment, has revised the base year of the Consumer Price Index for Agricultural and Rural Labourers to 2019=100 from June 2025. This new series replaces the previous 1986-87=100 series. The revised index has expanded its scope and coverage, now collecting data from 787 sample villages across 34 states and union territories.

Overall inflation rate softens, RBI reduces repo rate

Meanwhile, the country’s overall retail inflation rate was estimated at 1.33 percent in December 2025, slightly higher than 0.71 percent in November. In light of the softening inflation, the Monetary Policy Committee of the Reserve Bank of India has reduced its inflation forecast for the financial year 2025-26 to 2 percent. RBI Governor Sanjay Malhotra cut the repo rate by 25 basis points to 5.25 percent to boost growth.