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AICPI (IW) for June-2012 released – DA from July-2012 will be 72%
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AICPI (IW) for June-2012 released – DA from July-2012 will be 72%

by GConnect TeamAugust 1, 2012

AICPI (IW) (All-India Consumer Price Index Numbers for Industrial Workers on Base 2001=100) for the month of June 2012, has been published by Government today. AICPI (IW) has increased from 206 to 208.

The Dearness Allowance payable to Central Government Employees and Pensioners is determined based on All India Consumer Price Index for Industrial Workers. After implementation of sixth pay commission, AICPI (IW) (Base 2001=100) is used to determine DA. DA for Central Government Employees and Pensioners has to be reviewed twice annually and revision if any would be payable with effect from 1st January and 1st July every year.

How to calculate DA from AICPI (IW)?

To calculate Dearness Allowance we require AICPI (IW) for previous 12 months.

Dearness Allowance with effect from 1st January every year (Average of AICPI-IW for the months from January to December of previous year – 115.76)X100/115.76
Dearness Allowance with effect from 1st July every year (Average of AICPI-IW for the months from July of previous year to June of this year – 115.76)X100/115.76
115.76 is a factor which converts 1982 series AICPI (IW) (Base 1982=100), which was applicable prior to 6CPC to 2001 series AICPIW (Base 2001=100). In turn, This is arrived at by dividing the 1982 series AICPI by a linking factor which is 4.63 (536/4.63=115.76)

Calculation of DA with effect from 1st July 2012:

So we have all the data for calculating Dearness Allowanance with effect from 1st July 2012 now.

Month AIl Indian Consumer Price Index (AICPI-IW)
July 2011 193
Aug 2011 194
Sep 2011 197
Oct 2011 198
Nov 2011 199
Dec 2011 197
Jan 2012 198
Feb 2012 199
Mar 2012 201
Apr 2012 205
May 2012 206
Jun 2012 208

Average of AICPI (IW) for the period from July-2011 to June-2012:

(193+194+197+198+199+197+198+199+201+205+206+208)/12 = 199.58
DA with effect from 1st July 2012 = (199.58-115.76)X100/115.76)
= 72.41
Rounded to 72

GConnect DA Calculator:

This simple online tool would do all the calculations we explained above on click of a button.

Note:  The above calculation is only an estimation.  DA with effect from 1st July 2012 would be officially announced by Ministry of Finance during September/October 2012

The text of PIB release for announcement of AICPI (IW) for June 2012 is as follows:

All-India Consumer Price Index Numbers for Industrial Workers on Base 2001=100 for the Month of June 2012

All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of June, 2012 increased by 2 points and stood at 208 (two hundred eight).

During June, 2012, the index recorded maximum increase of 8 points each in Mercara and Godavarikhani centres, 7 points in Puducherry centre, 5 points in Madurai, Howrah, Chennai, Lucknow and Warrangal centres, 4 points in 7 centres, 3 points in 13 centres, 2 points in 11 centres, 1 point in 18 centres. The index decreased by 2 points each in Ludhiana and Mysore centres and 1 point in 5 centres, while in the remaining 14 centres the index remained stationary.

The maximum increase of 8 points in Mercara centre is mainly due to increase in the prices of Rice, Poultry (Chicken), Tea (Readymade), Coffee (Readymade), Bidi, Refined Liquor, Firewood, Cinema Charges, Bus Fare, etc. In Godawarikhani centre this increase of 8 points is mainly due to increase in the prices of  Rice, Arhar Dal, Moong Dal, Groundnut Oil, Vegetable & Fruit items, Firewood, Petrol, Toilet Soap, etc. The increase of 7 points in Puducherry centre is due to increase in the prices of Rice, Arhar Dal, Poultry (Chicken), Fish Fresh, Fish Dry, Eggs (Hen), Vegetable & Fruit items, Cigarette, Cinema Ch///arges, Petrol, Tailoring Charges, etc. The increase of 5 points in Madurai, Howrah, Chennai, Lucknow and Warrangal centres is due to increase in the prices of Rice, Arhar Dal, Poultry (Chicken), Fish Fresh, Eggs (Hen), Vegetable & Fruit items, Petrol, Tailoring Charges, etc. The decrease of 2 points in Ludhiana centres  is mainly due to decrease in the prices of Onion, Vegetable & Fruit items, Firewood, etc. and the decrease of 2 points in Mysore is due to decrease in the prices of Rice, Vegetable & Fruit items, etc.

The indices in respect of the six major centres are as follows :

1. Ahmedabad 205

2. Bengluru 211

3. Chennai 197

4. Delhi 188

5. Kolkata 200

6. Mumbai 212

The point to point rate of inflation based on CPI-IW(General) for the month of June, 2012 is 10.05% as compared to 10.16% in May, 2012. Inflation based on Food Index declined to 10.45% in June, 2012 from 10.61% in May, 2012.

The CPI-IW for July, 2012 will be released on the last working day of the next month, i.e. 31st August, 2012.

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