CPI-AL and RL
1. Context
All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) (Base: 1986-87=100) registered an increase of 11 points each in June 2024, reaching levels of 1280 and 1292, respectively
2. Consumer Price Index
- CPI is a measure that examines the weighted average of prices of a basket of goods and services which are of primary consumer needs. It includes transportation, food, and medical care.
- CPI is calculated by taking price changes for each item in the predetermined basket of goods and averaging them based on their relative weight in the whole basket.
- It calculates the difference in the price of commodities and services. its base year is 2012.
There are four types of CPI
- CPI for Industrial worker (IW)
- CPI for Agriculture Labour (AL)
- CPI for Rural Labour (RL)
- CPI Urban and rural combined
- The first three are compiled by the Labour Bureau of the Ministry of Labour and Employment, fourth is compiled by Nationational Statistics Organisation (NSO) by the Ministry of Statistics and Programme Implementation.
3. CPIs AL and RL
- These are used to fix the minimum wages of agricultural labourers and rural unskilled employees.
- The Labour Bureau is also expected to bring out a new series of the CPI-AL/RL, which currently has the base year of 1986-87.
4.1 CPIs AL
- The All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) (Base: 1986-87=100) registered an increase of 11 points each in June 2024, reaching levels of 1280 and 1292, respectively.
- The year-on-year inflation rates based on CPI-AL and CPI – RL for this month were recorded at 7.02% and 7.04%, compared to 6.31% and 6.16% in June, 2023. The corresponding figures for May, 2024 were 7.00% for CPI-AL and 7.02% for CPI-R
4.2 CPIs RL
- It recorded an increase of 1 to 16 points in 18 states and a decrease of 5 to 9 points in 2 states.
- Tamil Nadu with 1333 points topped the index table whereas Himachal Pradesh with 965 points stood at the bottom.
- Amongst states, the maximum increase in the Consumer Price Index Numbers for Agricultural and Rural Labourers was experienced by Bihar State (16 points each) mainly due to a rise in the prices of wheat-atta, maize, fish fresh, onion, firewood, vegetables and fruits, etc.
- On the contrary, the maximum decrease in the Consumer Price Index Numbers for Agricultural Labours and Rural Labourers was experienced by Assam state (9 points each) mainly due to a fall in the prices of rice, fish-fresh, firewood, vegetables and fruits etc.
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5. Inflation rate
- Point-to-point rate of inflation based on the CPI-AL and CPI-RL stood at 6.87 per cent and 6.99 per cent in November 2022 compared to 7.22 per cent and 7.34 per cent respectively in October 2022 and 3.02 per cent and 3.38 per cent respectively during the corresponding month of the previous year.
- Similarly, the food inflation stood at 6.19 per cent and 6.05 per cent in November 2022 compared to 7.05 per cent and 7 per cent respectively in October 2022 and 0.88 per cent and 1.07 per cent respectively during the corresponding month of the previous year.
For Prelims & Mains
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For Prelims: CPI-AL and RL, Inflation, Ministry of Labour and Employment,
For Mains:
1. What is Consumer Price Index for Agricultural Labourers and Rural Labourers? and Explain how it is measured. (250 Words)
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Previous Year Questions
1. With reference to inflation in India, which of the following statements is correct? (UPSC 2015)
A. Controlling the inflation in India is the responsibility of the Government of India only
B. The Reserve Bank of India has no role in controlling the inflation
C. Decreased money circulation helps in controlling the inflation
D. Increased money circulation helps in controlling the inflation
Answer: C
2. With reference to India, consider the following statements: (UPSC 2010)
1. The Wholesale Price Index (WPI) in India is available on a monthly basis only.
2. As compared to Consumer Price Index for Industrial Workers (CPI(IW)), the WPI gives less weight to food articles.
Which of the statements given above is/are correct?
A. 1 only B. 2 only C. Both 1 and 2 D. Neither 1 nor 2
Answer: C
3. Consider the following statements: (UPSC 2020)
1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).
2. The WPI does not capture changes in the prices of services, which CPI does.
3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.
Which of the statements given above is/are correct?
A. 1 and 2 only B. 2 only C. 3 only D. 1, 2 and 3
4. India has experienced persistent and high food inflation in the recent past. What could be the reasons? (UPSC 2011)
1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.
Which of the statements given above are correct?
A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2 and 3
Answer: B
5. The Public Distribution System, which evolved as a system of management of food and distribution of food grains, was relaunched as _______ Public Distribution System in 1997. (SSC JE EE 2021)
A. Evolved B. Transformed C. Tested D. Targeted
Answer: D
6. Under the Antyodaya Anna Yojana, up to what quantity of rice and wheat can be purchased at a subsidised cost? (FCI AG III 2023)
A. 35 kg B. 40 kg C. 30 kg D. 25 kg E. 50 kg
Answer: A
7. As per the the National Statistical Office (NSO) report released on 7 January 2022, India's Gross domestic product (GDP) is expected to grow at ___________ per cent (in first advance estimates) in the fiscal year 2021-22? (ESIC UDC 2022)
A. 17.6 per cent B. 9.5 per cent C. 11 per cent D. 9.2 per cent E. None of the above
Answer: D
8. The main emphasis of OPEC (Organisation of the Petroleum Exporting Countries) is on which of the following? (UKPSC 2016)
A. The production of petroleum
B. Control over prices of petroleum
C. Both (a) and (b)
D. None of the above
Answer: C
9. In the context of global oil prices, "Brent crude oil" is frequently referred to in the news. What does this term imply? (UPSC 2011)
1. It is a major classification of crude oil.
2. It is sourced from the North Sea.
3. It does not contain sulfur.
Which of the statements given above is/are correct?
A. 2 only B. 1 and 2 only C. 1 and 3 only D. 1, 2 and 3
Answer: B
10. The term 'West Texas Intermediate', sometimes found in news, refers to a grade of (UPSC 2020)
A. Crude oil B. Bullion C. Rare earth elements D. Uranium
Answer: C
11. With reference to the cultivation of Kharif crops in India in the last five years, consider the following statements: (UPSC 2019)
1. Area under rice cultivation is the highest.
2. Area under the cultivation of jowar is more than that of oilseeds.
3. Area of cotton cultivation is more than that of sugarcane.
4. Area under sugarcane cultivation has steadily decreased.
Which of the statements given above are correct?
A. 1 and 3 only B. 2, 3 and 4 only C. 2 and 4 only D. 1, 2, 3 and 4
Answer: A
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Source: PIB
