ALL-INDIA CONSUMER PRICE INDEX NUMBERS FOR AGRICULTURAL AND RURAL LABOURERS – DECEMBER, 2025

1. At a Glance

CPI-AL and CPI-RL are monthly price indices compiled by the Labour Bureau, Ministry of Labour & Employment, used primarily to revise minimum wages of agricultural/rural labourers and to measure rural cost-of-living changes [S1][S2].
Current series uses base year 2019=100, replacing the older 1986-87 base after roughly three decades [S2][S3].
December 2025 release shows a mild deflationary trend: CPI-AL fell to 137.12 and CPI-RL to 137.03, driven by a drop in the Food Index [S1].

Labour Bureau released the December 2025 CPI-AL/RL on 21 January 2026, reporting decreases of 0.28 and 0.27 points respectively, with the food sub-index falling by 0.70 points for both AL and RL [S1].
Comes months after the base-year revision (effective with the June 2025 release), which restructured the series from base 1986-87 to 2019=100 [S2][S3].

CPI-AL first introduced with base 1960-61=100 by the Labour Bureau [S3].
Switched to base 1986-87=100 in the 1990s; CPI-RL series introduced from November 1995 along with CPI-AL on the same base [S3].
2025 revision: Labour Bureau migrated to base 2019=100; first release under new base was for June 2025 [S2][S3].
Consumption weights derived from NSSO 68th Round Household Consumption Expenditure Survey (2011-12) [S2].

Parent body: Labour Bureau, Ministry of Labour & Employment, headquartered at Chandigarh/Shimla [S1][S2].
Base year: 2019=100 (revised from 1986-87) [S2][S3].
Coverage: 787 sample villages spread over 34 States/UTs (earlier 600 villages, 20 states) [S1][S2].
Release frequency: Monthly, with a 20-day lag [S2].
Data collection: Local rural markets on fixed days (e.g., 'Haat' days); verified with NSO field offices [S2].
December 2025 readings:
General CPI-AL: 137.12 (Nov: 137.40, ↓0.28) [S1]
General CPI-RL: 137.03 (Nov: 137.30, ↓0.27) [S1]
Food Index AL: 137.79 (Nov: 138.49, ↓0.70) [S1]
Food Index RL: 138.25 → fell 0.70 points [S1]
Primary use: Revising minimum wages for agricultural/rural labour by states and for DA calculations of certain rural workers [S2].

Economic
Falling CPI-AL/RL signals moderation in rural food inflation, easing real-wage pressure for landless labourers [S1].
Food carries dominant weight in rural consumption baskets, hence Food Index drop drives headline decline [S1].
Social
Indices directly affect minimum-wage indexation for India's most vulnerable workforce — agricultural and rural casual labourers [S2].
Administrative
Expansion from 20 to 34 States/UTs and 600 → 787 villages improves geographic representativeness and federal coverage [S2].
Statistical / Methodological
Weights still drawn from NSSO 68th Round (2011-12) consumption survey — a lag flagged by economists as a methodological limitation [S2].
Governance
Distinct from CPI-IW (Labour Bureau, industrial workers) and CPI (Rural/Urban/Combined) released by NSO/MoSPI — multiple CPIs reflect occupational segmentation [S2][S3].

July 2025: Labour Bureau announced base-year revision to 2019=100 for CPI-AL/RL [S3].
June 2025 release was the first under the new base year [S3].
21 January 2026: December 2025 data released; both indices marginally declined [S1].

GS-III: Indian Economy — Inflation, Indices, Employment & Agriculture.
GS-II: Government policies for vulnerable sections (rural labour wage protection).
Sample question stems: 1. "Examine the role of CPI-AL and CPI-RL in protecting the real wages of India's rural workforce. How does the 2025 base-year revision improve their representativeness?" 2. "Distinguish between the various Consumer Price Indices compiled in India in terms of compiling agency, target population, and policy use." 3. "Despite India having multiple CPIs, rural inflation measurement remains methodologically dated. Discuss."

CPI-IW (Industrial Workers) — also Labour Bureau; base 2016=100.
CPI (Rural/Urban/Combined) — MoSPI; base 2012=100; basis for RBI's inflation target.
WPI (Wholesale Price Index) — DPIIT; base 2011-12.
NSSO Household Consumption Expenditure Survey (HCES) 2022-23 — basis for upcoming weight revisions.
Minimum Wages Act, 1948 — uses CPI-AL for Variable Dearness Allowance (VDA) revisions.
MGNREGA wage indexation — was earlier linked to CPI-AL.
RBI Monetary Policy & inflation targeting — uses CPI-Combined, not CPI-AL.
Code on Wages, 2019 — subsumes Minimum Wages Act.

Confusing the compiling agency: CPI-AL/RL & CPI-IW = Labour Bureau; CPI (Rural/Urban/Combined) = NSO/MoSPI.
Wrong base year: aspirants often quote 1986-87; current base is 2019=100 since June 2025.
MGNREGA wages are now indexed to CPI-Rural (MoSPI), not CPI-AL (Labour Bureau) — frequent confusion.
Conflating CPI-AL with CPI-Rural — different baskets, agencies, and uses.
Assuming RBI's 4% inflation target uses CPI-AL — it uses CPI-Combined.

[S1] ALL-INDIA CPI FOR AGRICULTURAL AND RURAL LABOURERS – DECEMBER 2025 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2216785 — (tier: 1)
[S2] Consumer Price Index Numbers for Agricultural and Rural Labourers (Scheme/Methodology) — https://labourbureau.gov.in/consumer-price-index-numbers-for-agricultural-and-rural-labourers — (tier: 1)
[S3] CPI(AL/RL) Scheme — Labour Bureau — https://www.labourbureau.gov.in/cpial-rl-scheme — (tier: 1)
[S4] CPI-AL & RL June 2025 (first release under base 2019=100) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2145905 — (tier: 1)