Retail price inflation in rural areas up 13%

The wholesale price inflation was negative for 10 weeks in a row, but retail prices of items consumed by people in villages rose at the rate of nearly 13 per cent in the month of July.

Inflation based on consumer price index for agriculture labourers rose from 11.52 per cent in June to 12.90 per cent in July, while the one based on consumer price index for rural labourers went up from 11.26 per cent to 12.67 per cent last month.

This is in sharp contrast to the wholesale price inflation which remained negative for 10 straight weeks, even though it rose slightly to (-)1.53 per cent during the week ended August 8.

The variation between wholesale price inflation and consumer price-based inflation is mainly because of high weightage of food items in consumer price indices.

This means that food prices are rising at high rates, which analysts said would show further tendency to move upwards due to erratic monsoon and increased minimum support price announced by the government for paddy and pulses.

Retail prices based inflation rose as the All-India Consumer Price Index numbers for agricultural and rural labourers for July rose by 15 points and 14 points to stand at 499 points and 498 points, respectively. 

In agricultural labourers' category, food prices rose by 3.69 per cent in July compared to June, pan supari by 2.41 per cent, fuel and light 1.89 per cent and clothing, bedding and footwear by 0.93 per cent.

In case of rural labourers, food prices rose by 2.89 per cent, pan and supari by 3.69 per cent, fuel and light 1.68 per cent and clothing, bedding and footwear by 0.86 per cent.

In case of agricultural labourers, three states showed an increase in index between 19 and 27 points, 12 states between 10 and 18 points and five states between 1 and 9 points.

Punjab with 541 points topped the index table, whereas Himachal Pradesh with the index level of 421 points stood at the bottom.

For rural labourers, the increase in index ranged between 19 and 27 points in three states, between 10 and 18 points in 11 states and between 1 and 9 points in six states.

Punjab with 539 points topped the index table, whereas Manipur with the index level of 435 points stood at the bottom.

The consumer price index numbers of Maharashtra for agricultural labourers and rural labourers registered the highest increase of 27 points each mainly due to a rise in the prices of jowar, pulses, fish, milk, onion, vegetables and fruits, sugar, gur, tea leaf, tobacco leaf, firewood etc.