CONSUMER PRICE INDEX NUMBERS FOR AGRICULTURAL & RURAL LABOURERS (BASE 1986-87=100) ANNUAL REPORT 2006-07

TRENDS IN THE CONSUMER PRICE INDEX NUMBERS

TRENDS IN THE CONSUMER PRICE INDEX NUMBERS FOR (i) AGRICULTURAL LABOURERS AND (ii) RURAL LABOURERS  (BASE 1986-87=100) DURING 2006-07. 

The Labour Bureau has been compiling the current series of Consumer Price Index Numbers for (i) Agricultural Labourers (CPI-AL) and (ii) Rural Labourers (CPI-RL) on base 1986-87=100 since November, 1995 replacing the earlier series of Consumer Price Index Numbers for Agricultural Labourers on base 1960-61=100. These indices are compiled on monthly basis and released on 20th of the succeeding month.  The Field Operations Division of the National Sample Survey Organisation has been entrusted with the task of collecting rural retail prices from 600 sample villages spread over 66 NSS regions of 20 States. The consumer expenditure survey data collected during 38th round of NSS in 1983,  formed the basis for derivation of the weighting diagram for the series.  While analysing the movement of consumer price index numbers of agricultural labourers for the years 2005-06 and 2006-07,  the following trends have emerged:

1.         The All India CPI-AL increased from 372 points in July, 2006 to 392 points in February, 2007 due to increase in the prices of rice, wheat atta, jowar, maize, ragi, pulses, fish fresh/dry, milk, onion, chillies green/dry,   vegetables & fruits, gur, firewood, pan leaf, anacin, washing soap and bus fare, barring December, 2006 where it remained constant (Table-3).

2.                  While remaining stationary at 392 points in March, 2007, it registered increasing trend and reached the level of 399 points in June, 2007 primarily on account of increase in the prices of rice, jowar, bajra, ragi, arhar dal, masur dal, fish fresh, mustard oil, groundnut oil, milk, onion, chillies green/dry, vegetables & fruits,  pan leaf,  bidi,  firewood,  anacin,  cinema ticket, barber charges and washing soap (Table-3).

3.                   During 2005-06, a  fluctuating  trend  in  the indices was noticed.  It increased from 350 points in July, 2005 to 360 points in November, 2005 due to increase in the prices of rice, wheat atta, maize/maize atta, pulses, milk, onion, vegetables & fruits, sugar and gur (Table-3).

4.                   It started decreasing thereafter and reached the level of 357 points in January and February, 2006 on account of fall in the prices  of  rice, arhar dal,  fish  

fresh, mustard oil, groundnut oil, milk, onion, chillies green/dry, vegetables & fruits and gur (Table-3).

5.                   From March, 2006 onwards, it again showed an increasing trend and settled at 370 points in June, 2006 owing to increase in the prices of rice, wheat atta, jowar, pulses, fish fresh/dry, milk, goat meat, chillies green/dry, vegetables & fruits and gur (Table-3).

6.         The trend in movement of indices in respect of  CPI Numbers for Rural Labourers was almost the same as noticed in the case of Agricultural Labourers, since the agricultural labour households constituted about three-fourth of the rural labour households.

7.                  The All India CPI-RL increased from 374 points in July, 2006 to 391 points in November, 2006 due to increase in the prices of rice, wheat atta, jowar, maize, ragi, pulses, fish fresh/dry, milk, onion, chillies green/dry, vegetables & fruits, gur, firewood, pan leaf, anacin, washing soap, bus fare and barber charges (Table-3).

8.                  While remaining stationary at 391 points in December, 2006 and January, 2007, it again started increasing from March, 2007 to reach the level of 400 points in June, 2007 solely on account of increase in the prices of rice, jowar, bajra, ragi, arhar dal, masur dal, fish fresh, mustard oil, groundnut oil, milk, onion, chillies green/dry, vegegables & fruits, pan leaf, bidi, firewood, anacin, cinema ticket, barber charges and washing soap (Table-3).

9.                  During 2005-06, a fluctuating trend in the indices was observed.  It increased from 353 points in July, 2005 to 362 points in November, 2005 due to increase in the prices of rice, wheat atta, maize/maize atta, pulses, milk, onion, vegetabnles & fruits, sugar and gur (Table-3).         

10.              It registered a decreasing trend thereafter and reached to level of 359 points in jaunary and February, 2006 on account of fall in the prices of rice, arhar dal, fish fresh, mustard oil, groundnut oil, milk, onion, chilles green/dry, vegetables & fruits and gur (Table-3).

11.              From march, 2006 onwards, it again showed an increasing trend and settled at 372 points in June, 2006 owing to increase in the prices of rice, wheat atta, jowar, pulses, fish fresh/dry,  milk, goat meat, chilleis green/dry, vegetables & fruits and gur (Table-3).

12.              The point to point rate of inflation based on CPI-AL during 2006-2007 increased from 6.29 per cent in July, 2006 to 7.84 per cent in June, 2007 (Table-11).

13.               The inflation rate had gone up from 5.95 per cent in July, 2006 to 7.53 per cent in June, 2007 in respect of Rural Labourers (Table-11).

14.               Increasing trend in the rate of inflation based on both the series of index numbers was also observed during the year 2005-2006. It increased from 3.55 per cent in July, 2005 to 7.25 per cent in June, 2006 in case of the CPI-AL and that for CPI-RL from 3.82 per cent to 7.20 per cent over the same period (Table-11).

15.              The monthly increase in the CPI-AL and CPI-RL (General and Food Indices separately), for the period 2006-07 has been shown in Exhibit I and II respectively.