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Charts & Analysis

Chart: Forty Five Years of Industrial and Farm Labour Inflation

Consumer Price Indexes for Agricultural Labourers and Industrial Workers have been available since the 1960s. Here’s a long term chart of how they’ve fared.

Farm Workers (Agricultural Labourers)

CPI Inflation: Farm Workers (Agricultural Labourers)

Source: Labour Ministry

Farm Workers have had it rotten. With inflation spiking in the 70s to over 40% from oil shocks and supply constraints, things had largely gotten under control until about 2004. Then came NREGA which changed a lot – and took Farm CPI Inflation to 18% in Jan 2010. A small reveral took rates below 10% but since mid-2012, rates are rising again.

In Jun 2013, the number is 12.85%.

CPI: Industrial Workers

CPI Inflation: Industrial Workers

Source: Labour Ministry

CPI (IW) data shows a similar pattern. The current number is 10.7% for May 2013.

Bonus: CPI (Rural Labourers)

Oh yes, there’s another CPI number, for Rural Labourers. Data only from 1995.

CPI Inflation: Rural Labourers

Source: Labour Ministry

We’re at 12.65% (June 2013).

And for the “New” CPI, check out the CPI chart (Jun 2013). Currently at 9.87%.

Key Point: For workers, costs have gone up 25-28x since the 60s. Compounded rate of 13% per year.