Key Takeaways
- Agricultural labourers saw inflation turn negative at -0.07% in September 2025
- Rural labourers’ inflation eased significantly to 0.31%
- Food inflation dropped sharply to -2.35% for AL and -1.81% for RL
- The decline is attributed to falling food commodity prices across rural India
Inflation for agricultural and rural labourers showed significant moderation in September 2025, with agricultural labourers experiencing negative inflation of -0.07% while rural labourers saw inflation ease to 0.31%. The sharp decline was primarily driven by falling food prices across rural areas.
Official Data Release
The Ministry of Labour & Employment released the data on Saturday, October 18, stating:
“The year-on-year inflation rate for Agricultural Labourers and Rural Labourers stood at -0.07% and 0.31%, respectively, in September 2025. The food inflation in September 2025 stood at -2.35% for AL and -1.81% for RL.”
Month-on-Month Comparison
The September figures represent a substantial drop from August 2025 levels, when inflation stood at 1.07% for agricultural labourers and 1.26% for rural labourers. Food inflation has also deepened into negative territory compared to the previous month.
Consumer Price Index Movement
The All-India Consumer Price Index for Agricultural Labourers fell by 0.11 points to 136.23, while the index for Rural Labourers declined by 0.18 points to 136.42. These indices are compiled from data collected across 787 sample villages spanning 34 States and Union Territories, using 2019 as the base year.
The Food Index, a crucial component of the CPI, recorded decreases of 0.47 points for agricultural labourers and 0.58 points for rural labourers in September 2025.
Broader Inflation Context
India’s overall retail inflation stood at 1.54% in September 2025, marking the lowest level since June 2017. This represents a decrease of 53 basis points from August 2025 levels.
The decline in headline and food inflation is mainly attributed to favorable base effects and reduced prices across multiple categories including vegetables, oils and fats, fruits, pulses, cereals, eggs, and fuel.
In contrast, India’s wholesale inflation rose to 1.84% in September 2024, primarily due to increasing prices of food articles and manufacturing equipment, compared to the four-month low of 1.31% recorded in August 2024.
