India’s agricultural and rural workforce experienced a notable decline in inflationary pressures in April 2025, providing much-needed financial relief to low-income households.
According to data released by the Ministry of Labour and Employment, the year-on-year inflation rate for agricultural labourers (CPI-AL) dropped to 3.48%, while the rate for rural labourers (CPI-RL) fell to 3.53%.
This represents a significant improvement from April 2024, when the rates stood at 7.03% and 6.96%, respectively.
Steady Decline Compared To Previous Month
The downtrend in inflation is evident not only on an annual basis but also in comparison to the previous month.
In March 2025, CPI-AL was recorded at 3.73%, and CPI-RL at 3.86%, showing a steady month-on-month decline.
This ongoing moderation in inflation has been a consistent trend for the past six months, offering some respite to economically vulnerable rural communities.
Food Prices Contribute To Softer Inflation Trends
The recent drop in inflation for agricultural and rural workers coincides with a broader softening in India’s retail inflation.
In April 2025, headline retail inflation decreased to 3.16%, down from 3.34% in March.
This marks the lowest inflation level since July 2019, largely attributed to a reduction in food prices.
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Food inflation, which accounts for nearly 50% of the Consumer Price Index (CPI), fell to 1.78% in April, down from 2.69% in the previous month.
This marks the third consecutive month in which inflation has remained below the Reserve Bank of India’s (RBI) 4% medium-term target.
The sustained moderation in inflation strengthens the case for continuing accommodative monetary policy, aimed at supporting economic growth.
Positive Food Inflation Outlook Strengthens Economic Forecasts
The RBI’s recent revision of its inflation forecast for FY 2025-26 reflects improving supply-side dynamics, particularly in the food sector.
The central bank lowered its inflation forecast from 4.2% to 4%, driven by positive developments in food inflation.
RBI Governor Sanjay Malhotra highlighted that uncertainties surrounding the rabi harvest have significantly reduced, with the second advance estimates indicating record wheat output and higher pulse production compared to the previous year.
In addition, strong kharif arrivals are expected to sustain the moderation in food inflation over the coming months, further strengthening the outlook for India’s inflation trajectory.
As inflationary pressures ease, both rural workers and the broader economy are likely to benefit from a more stable financial environment, with improved food price stability playing a key role in this positive trend.
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