Retail inflation for farm and rural workers in June eased to 7.16 percent and 7 percent, respectively, as compared to May this year, a labour ministry statement said on Monday.

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"Point to point rate of inflation based on the CPI-AL (Consumer Price Index-Agricultural Labourers and CPI-RL (Consumer Price Index for rural labourers) decreased to 7.16 percent and 7.00 percent in June 2020 from 8.40 percent and 8.12 percent, respectively in May 2020," the ministry said.

According to the statement, inflation based on food index of CPI-AL and CPI-RL stood at (+) 8.57 percent and (+) 8.41 percent, respectively, in June 2020. The All-India CPI-AL and CPI-RL (Base: 1986-87=100) for June 2020 decreased by 1 point each to stand at 1,018 and 1,024 points, respectively, compared to 1,019 and 1,025 in May this year.

The major contribution towards the fall in general index of agricultural labourers and rural labourers came from food, with (-) 1.82 points and (-) 1.58 points, respectively, mainly due to fall in prices of rice, arhar dal, masur dal, ground nut oil, meat goat, poultry, vegetables and fruits, among others.

Labour Minister Santosh Gangwar said, "The softening of inflation is mainly due to free supply of food grains under PM Garib Kalyan Ann Yojana (PMGKAY). This has benefitted a large number of households under Targeted Public Distribution System (TPDS) including agricultural and rural labourers thereby putting less burden on their daily budgetary requirement".

The CPI-AL and CPI-RL are brought out by Labour Bureau - a wing of labour ministry. Director General Labour Bureau D S Negi said easing of inflation reflects the efforts done by the central and state governments along with civil societies to ensure supplies of essentials during these testing times amid COVID-19 outbreak.

According to the data, the rise/fall in index varied from state to state. In case of agricultural labourers, it recorded an increase of 1 to 7 points in 9 states and a decrease of 1 to 19 points in 9 other states, while it remained stationary in 2 states - Manipur and Rajasthan.

Tamil Nadu with 1,214 points topped the index, whereas Himachal Pradesh with 784 points stood at the bottom. In case of rural labourers, it recorded an increase of 1 to 8 points in 9 states and a decrease of 2 to 20 points in 10 states, while it remained stationary in Manipur.

Tamil Nadu with 1,199 points topped the index, whereas Himachal Pradesh scored the lowest 832 points.

Amongst states, the maximum increase in the Consumer Price Index Numbers for agricultural labourers and rural labourers was experienced by Orissa (7 points and 8 points respectively) mainly due to rise in the prices of meat goat, fish fresh/dry, vegetables and fruits and saree cotton (mill) etc.

On the contrary, the maximum decrease in the Consumer Price Index Numbers for agricultural labourers and rural labourers was experienced by Jammu & Kashmir State (-19 points and -20 points respectively) mainly due to fall in the prices of fruits and vegetables, among others.