Inflation and wage growthThe prevailing narrative on consumption is that urban demand is subdued but recovering, while rural demand is doing well thanks to the good monsoon. Data seems to back this: as per Labour Bureau data, real rural wage growth – or wage growth after adjusting for rural retail inflation – rose to 4.1% in the first quarter of 2025-26 after averaging zero over the previous three years. In nominal terms, rural wage growth was 6.5% in the first quarter, the highest since mid-2023. For urban wage growth, a proxy often used is the increase in staff costs of listed companies. In nominal terms, this proxy of urban wage growth was 7.8% in the quarter – a level it has been broadly stuck at since mid-2023.

Source: Indian Express January 28, 2026 15:37 UTC