Inflation increased for agricultural workers and rural workers, the effect of rise in food prices

The maximum decline in the inflation rate related to rural areas was recorded in Uttar Pradesh, where the inflation index has decreased in both the categories, while the highest increase was seen in Himachal Pradesh and Rajasthan.

Inflation increased for rural workers

Rapid rise in food prices in rural areas inflation rate ,inflation), retail inflation for agricultural workers and rural workers in January due to rising prices of some food products (Retail inflation) increased to 5.49 percent and 5.74 percent respectively. According to the data released by the Ministry of Labor and Employment on Friday, the inflation rate based on the Consumer Price Index (CPI-AL) for agricultural workers stood at 5.49 percent in January 2022. Whereas rural workers (rural workersThe inflation rate based on the Consumer Price Index (CPI-RL) stood at 5.74 per cent. Earlier in December 2021, the inflation rate was 4.78 percent for agricultural workers and 5.03 percent for rural workers. The Labor Ministry said that in January 2021, the CPI-L stood at 2.17 percent and the CPI-RL was 2.35 percent.

Food inflation rises

Retail inflation for agricultural workers and rural workers has increased due to rising food prices in January 2022. Food inflation for agricultural workers stood at 4.15 per cent in January, while it stood at 4.33 per cent for rural workers. In December 2021, it was 2.99 percent and 3.17 percent respectively. At the national level, the CPI-AL declined by 2 points to 1,095 in January 2022 as compared to December 2021, while the CPI-RL declined by one point to 1,105. The biggest decline among the states was recorded in Uttar Pradesh, where the inflation index declined by 9 points in both the categories. In contrast, Himachal Pradesh and Rajasthan saw the highest increase of 8 points in CPIR-L.

Retail inflation at 7-month high in January

Retail inflation rose to a seven-month high of 6.01 per cent in January as food items like vegetables, meat, fish became costlier. This level of retail inflation is slightly above the Reserve Bank’s satisfactory range. According to the recently released official data, the retail inflation in the oil and fat segment stood at 18.7 per cent. Inflation in other segments, including fuel and lighting, textiles and footwear, and transport and communication sectors, rose 9 per cent year-on-year. Meanwhile, the inflation figure for December 2021 has been revised to 5.66 per cent from 5.59 per cent. It was 4.06 percent in January 2021. Earlier, inflation was at a high of 6.26 per cent in June 2021. According to the data of the National Statistical Office (NSO), the inflation rate in food articles stood at 5.43 per cent in January 2022 from 4.05 per cent in the previous month. The inflation rate of food grains and its products increased to 3.39 percent in January from 2.62 percent in December 2021. Inflation in the case of vegetables rose to 5.19 percent as against a decline of 2.99 percent in December.

Read also: Planning to invest but do not know how much money to invest in which asset, this formula will help you