Retail inflation up for both farm and rural labourers

Retail price inflation for agricultural and rural labourers rose to 9.63 per cent in May, from 9.11 per cent the previous month, mainly because of a rise in the prices of food, fuel and clothing.

Wholesale price inflation for May rose to 9.06 per cent from 8.66 per cent a month earlier and was one of the factors for the Reserve Bank of India to raise the repo (short-term lending) rate by 25 basis points. The reverse repo (short-term borrowing) rate also was up by 25 basis points.

Inflation for food items consumed by agriculture labourers rose to 7.50 per cent in May from 7.34 per cent in April, while that for items consumed by rural labourers increased to 7.48 per cent from 7.14 per cent.

The consumer price index for agriculture labourers (CPI-AL) and the index for rural labourers (RL) registered the maximum increase of 11 points and 10 points respectively in Maharashtra, due to rising prices of jowar, bajra, goat meat, milk, chilies dry, vegetables, fruits, gur, country liquor and firewood.

On the other hand, CPI-AL and CPI-RL recorded the highest decrease of three and four points respectively in Haryana, due to falling prices of wheat atta, onion, turmeric and fruit and vegetables.