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DAILY NEWS ANALYSIS

  • 20 February, 2021

  • 4 Min Read

CPI-Agriculture Labour and CPI-Rural Labour

  • Consumer Price Index (CPI) for Agricultural Labourers (AL) and Rural Labourers (RL) for the month of January 2021 is decreased.
  • The major contribution towards the fall in general index of AL and RL came from the fall in prices of pulses, onion, potato, brinjal etc.
  • The fall/rise in index varied from State to State.

Consumer Price Index

  • It examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.
  • It is calculated by taking changes in price over time for each item in the predetermined basket of goods and averaging them.
  • This is done from the perspective of a retail buyer.
  • Labour Bureau under the Ministry of Labour and Employment compiles the CPI for Industrial Workers (IW), Agricultural Labourer (AL) and Rural Labourer (RL).
  • Central Statistical Organisation (CSO) under the Ministry of Statistics and Programme Implementation compiles CPI (Rural/ Urban/ Combined).
  • CPI is adopted as the key measure of retail inflation by the Reserve Bank of India in 2014.

India uses 2012 as the base year for calculating CPI.

Source: TH


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