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Consumer Price Index Numbers for Industrial Workers (CPI-IW) July 2012

Consumer Price Index Numbers for Industrial Workers (CPI-IW) July 2012

The All-India CPI-IW rose by 4 points from 208 for June 2012 to 212 for July 2012.

All India Consumer Price Index attracts the interest of Central Government Employees as the Dearness Allowance paid to them is based on this Index only.

We estimated the effective increase of DA from July 2012 as 7% and Dearness Allowance payable with effect from 1st July 2012 as 72%. based on AICPI (IW) for the months from July 2011 to June 2012 (Dearness Allowance percentage is 65% up to June 2012).

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

Click here to read estimation details of DA with effect from July 2012

Also, use the following GConnect DA Calculator for Estmating DA with effect from July 2012

Now Government has released the All India Consumer Price Index (Industrial Workers) for the month of July 2012. This index would be useful to estimate DA with effect from Jan 2013.

The full text of this press release is as follows

The All-India CPI-IW rose by 4 points and pegged at 212 (two hundred and twelve).

On 1-month percentage change, it increased by 1.92 per cent between June and July compared with 2.12 per cent between the same two months a year ago.

The largest upward contributions to the change in current index came from food prices which rose by 2.38 per cent, contributing 2.44 percentage points to the total change. The largest upward pressure came from Rice, Arhar Dal, Green-chilly, Onion, vegetables, mainly Potato and Tomato, and Sugar. This was, however, partially offset by downward contributions from French Bean, Brinjal, and Poultry (Chicken).

House rent which increased by 2.96 per cent, contributed 1.05 percentage points to the overall change. The change was reported during the 21st round of Repeat House Rent Survey conducted from January to June, 2012 to capture the change in expenditure incurred on rent by industrial workers. The increase in the current round was mainly on account of annual increment awarded to the salaried persons under centre/state sphere as well as the rise in rent reported from private dwellings.

The largest downward contributions to the change in current index came from Transport and Communication with a decline of 0.99 per cent, contributing 0.09 percentage points to the total change. The main downward pressure came from Petrol as an effect of fall in price notified w.e.f. July 24, 2012.

The year-on-year inflation measured by monthly CPI-IW stood at 9.84 per cent for July, 2012 (over July, 2011) as compared to 10.05 per cent for the previous month and 8.43 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 11.27 per cent against 10.45 per cent of the previous month and 6.25 per cent during the corresponding month of the previous year.

At centre level, largest increase of 18 points has been recorded in Durgapur followed by Ranchi-Hatia (10 points), Vijaywada and Jabalpur (9 points each), Goa and Faridabad (8 points each), Bhilai (7 points) and Hubli-Dharwar, H.P., Tiruchirapally and Delhi (6 points each). Among others, 18 centres have recorded rise of 5 points followed by 4 points in 15 centres, 3 points in 13 centres, 2 points in another 13 centres and 1 point in 4 centres. Howrah was the only centre which reported decline in index of 1 point. Rest of 3 centre’s indices remained stationary.

There are in all 26 centres whose indices are at par or above All-India Index and rest of 52 centres have indices lower than national average.

The next index of CPI-IW for the month of August, 2012 will be released on Friday, September 28, 2012.

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