All-India Consumer Price Index Numbers for Agricultural and Rural Labourers - December 2021 released
- The All-India Consumer Price Index Numbers for Agricultural Labourers and Rural Labourers for the month of December 2021 increased by 5 points each to stand at 1097 (One thousand and ninety-seven) and 1106 (One thousand one hundred and six) points respectively.
- The major contribution towards the rise in the general index of Agricultural Labourers and Rural Labourers came from Fuel & Light group and miscellaneous group mainly due to rise in prices of firewood, kerosene oil, medicine, barber charges, bus fare, toilet soap, washing soap, etc.
- The rise/fall in index varied from State to State.
- In the case of Agricultural Labourers, it recorded an increase of 1 to 20 points in 11 States and a decrease of 1 to 12 points in 8 States while it remained stationary for Orissa State.
- Tamilnadu with 1290 points topped the index table whereas Himachal Pradesh with 861 points stood at the bottom.
- In the case of Rural Labourers, it recorded an increase of 1 to 20 points in 11 States and a decrease of 1 to 14 points in 8 States while it remained stationary for Orissa State.
- Tamilnadu with 1276 points topped the index table whereas Himachal Pradesh with 915 points stood at the bottom.
- Amongst states, the maximum increase in the Consumer Price Index Numbers for Agricultural and Rural Labourers was experienced by Tamilnadu State (20 points each) mainly due to a rise in the prices of vegetables & fruits, onion, chilies green/dry, tamarind, etc.
- On the contrary, the maximum decrease in the Consumer Price Index Numbers for Agricultural and Rural Labourers was experienced by Himachal Pradesh State (12 points and 14 points respectively) mainly due to fall in the prices of wheat atta, pulses, onion, vegetables, and fruits, etc.
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.
- CPI is an economic indicator, most widely used measure of inflation.
- It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.
- The CPI measures the average change in prices over time that consumers pay for a basket of goods and services, commonly known as inflation.
- Changes in the CPI are used to assess price changes associated with the cost of living; the CPI is one of the most frequently used statistics for identifying periods of inflation or deflation.
- The weighted average of the prices of goods and services that approximates an individual’s consumption patterns is used to calculate CPI.
- The Consumer Price Index or CPI is calculated by multiplying 100 to the fraction of the cost price of the current period and the base period.
- CPI = (Cost of basket in current period/ Cost of basket in base period) x 100