AICPIN for the month of September 2020
Ministry of Labour and Employment has released a new series of Consumer Price Index for Industrial Workers (CPI-IW) with 2016 as base year on 22nd October 2020 from the existing 2001-100. AICPIN is the base to calculate dearness allowance (DA) for government employees, wages for industrial workers and dearness relief for pensioners. Sudden change in Dearness Allowance can’t expect from the new series, but step by step there is a chance of increasing due to inflation. It will take time to get benefit out of it for the central government employees.
The base year of price index numbers will be revised at frequent intervals, generally not exceeding 10 years to reflect the changes that take place in the consumption pattern of consumers. It is primarily used to regulate the dearness allowance of government employees and the workers in the industrial sectors. It is also used in fixation and revision of minimum wages in scheduled employments besides measuring the inflation in retail prices. The new index will assign more weight to spend on services such as education, healthcare, housing, travel and transportation, as spending on these items have gone up, as compared to primary items such as food.
The Report on “New Series of Consumer Price Index for Industrial Workers (Base 2016=100)” is an important publication meant to give insights into the concepts, definitions and methodology related to the new series of CPI-IW with 2016 as base year. This will serve as a useful reference book for researchers, academicians, scholars and all other stakeholders of CPI-IW. As per the recommendations of International LabourOrganisation (ILO), Index Review Committee (IRC) and National Statistical Commission (NSC), the base year of price index numbers should be revised at frequent intervals generally not exceeding 10 years to reflect the changes that take place in the consumption pattern of consumers. The CPI-IW is compiled as per international best practices & guidelines of ILO.
Expected DA from January 2021
Shri Gangwar also released the maiden index with base year 2016 for the month of September, 2020. The Index is compiled for 88 centres and All India. All India index for the month of September, 2020 stands at the level of 118 and linking factor for the conversion of new series index to previous series on base 2001=100 is 2.88.(AICPIN for month September 2001-100 based is 340)
The CPI-IW (2016=100) series replaces the CPI-IW (2001=100) series. The new series is more representative in character and reflects the latest consumption pattern of the industrial workers. Unlike predecessors, the new series has same survey base year and price base which in itself is a major improvement. It is also released in the shortest time span of less than 4 years as never before.