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Inflation Stays Mild in July; Year-on-Year Food Prices Drop for Rural and Farm Workers

Consumer Price Index (CPI) for agricultural and rural labourers saw a modest monthly rise in July 2025, while food inflation turned negative, offering relief to rural households

KJ Staff
Overall, the data reflects a relatively stable price environment in rural India.(Photo Source: Canva)
Overall, the data reflects a relatively stable price environment in rural India.(Photo Source: Canva)

Ministry of Labour and Employment has released the latest Consumer Price Index (CPI) figures for July 2025, showing a modest rise in overall inflation for agricultural and rural labourers, while food prices recorded a year-on-year decline.

According to the data, the CPI for Agricultural Labourers (AL) rose from 134.08 in June to 135.31 in July, while for Rural Labourers (RL), it increased from 134.37 to 135.66, indicating a slight increase in prices across rural households.

Food Index registered a sharper monthly rise, moving from 133.74 to 135.69 for AL and from 133.93 to 136.09 for RL. However, year-on-year figures showed a decline in food prices, with inflation standing at −1.56% for AL and −1.13% for RL compared to July 2024. This indicates that while prices increased compared to June 2025, they remained lower than the same period last year.

Month-on-month general inflation for July 2025 stood at 0.77% for AL and 1.01% for RL, reflecting moderate price increases in most essential categories. Fuel, light, and miscellaneous items contributed slightly to the rise, while clothing and footwear recorded a marginal dip.

State-wise trends highlighted significant variations. Andhra Pradesh recorded one of the steepest increases, with the AL index rising from 137.77 to 141.33 and RL from 137.89 to 141.50. Haryana also reported a notable hike, while Mizoram continued to post the highest CPI levels among all states at 146.50 for AL and 143.80 for RL.

Overall, the data reflects a relatively stable price environment in rural India. Monthly price movements indicate seasonal fluctuations, while the year-on-year decline in food prices provides some relief to rural households, where food expenditure forms a major portion of daily living costs.

However, increases in other essential categories such as fuel and miscellaneous goods underline the need for close monitoring of inflationary pressures in the coming months.

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