Inflation in rural areas rises sharply

Consumer inflation has been on a steady rise even as wholesale price inflation has been dropping, even turning negative in certain weeks. This is not a new development but the trend is not showing signs of slowing down. The Consumer Price Index for agricultural labour increased by 11.5% in June 2009 over the previous corresponding period while CPI for rural labour too increased by 11.2%. The price index had risen by 10.2% in May 2009, reflecting a sharp increase.

Consumer price inflation is a more accurate measure of how inflation is affecting individuals. The wholesale price index is a more popular measure because it covers a wide range of commodities, is reported weekly and followed closely by various intermediaries, including stock and bond markets. Apart from these two indices, there is an overall CPI, and an index for industrial workers and urban workers too. CPI for industrial workers was 8.6% in May 2009 and 9.7% for urban workers.

The PIB press release. More information available at the Ministry of Labour website and the Statistics wing of the government.

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