Consumer Price Index for Industrial Workers (2016=100) – November 2020

The All-India CPI-IW for November, 2020 increased by 0.4 points and stood at 119.9 (one hundred nineteen and point nine). On 1-month percentage change, it increased by (+) 0.33 per cent between October and November, 2020 compared to (+) 0.92 per cent increase between corresponding months of previous year.

The maximum upward pressure in current index came from Food & Beverages group contributing (+) 0.25 percentage points to the total change. At item level, Rice, Arhar Dal, Fish Fresh, Milk, Mustard Oil, Soyabean Oil, Sunflower Oil, Onion, Potato, Chillies Dry, Tea Leaf, Cooked Meal, etc. are responsible for the increase in index. However, this increase was checked by Poultry (Chicken), Tomato, Brinjal, Carrot, Cauliflower, Ginger, Gourd, Green Coriander Leaves, Lady Finger, Peas, Orange, etc., putting downward pressure on the index.

At centre level, Puducherry recorded the maximum increase of 4 points. Among others, 3 points increase was observed in 4 centres, 2 points in 7 centres and 1 point in 30 centres. On the contrary, Guntur, Bhilai, Udham Singh Nagar and Vadodara recorded a maximum decrease of 2 points each. Among others, 1 point fall was observed in 17 centres. Rest of 25 centres’ indices remained stationary.

Year-on-year inflation based on all-items stood at 5.27 per cent for November, 2020 as compared to 5.91 per cent for the previous month and 8.61 per cent during the corresponding month of the previous year. Similarly, Food inflation stood at 7.48 per cent against 8.21 per cent of the previous month and 9.87 per cent during the corresponding month a year ago.

Y-o-Y Inflation based on CPI-IW (Food and General)

All-India Group-wise CPI-IW for October and November, 2020

*Rounded up from second decimal place.

CPI-IW: Groups Indices

Speaking about the latest index, Shri Santosh Gangwar, Minister of State (I/C) for Labour and Employment said, “The rise in index coupled with fall in annual inflation will have dual impact in terms of increasing income and purchasing power of the workers. He added that the effect is mainly due to vegetables which had good supply in the market and provided respite to the consumers.

Shri DPS Negi, Director General of Labour Bureau while releasing the index said, “The rise in index during November, 2020 and fall in inflation rate are in line with other price indices compiled and released by other Government agencies”.

He further said that Rise in index is mainly on account of increase in prices of Rice, Arhar Dal, Fish Fresh, Milk, Mustard Oil, Soyabean Oil, Sunflower Oil, Onion, Potato, Chillies Dry, Tea Leaf, Cooked Meal, Cooking Gas, Household Goods & Services etc.

The next issue of CPI-IW for the month of December, 2020 will be released on Friday 29th January, 2021. The same will also be available on the office website www.labourbureaunew.gov.in.

The Labour Bureau, an attached office of the M/o Labour & Employment, has been compiling Consumer Price Index for Industrial Workers every month on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country. The index is compiled for 88 centres and All-India and is released on the last working day of succeeding month.

Source: PIB

The post Expected DA January 2021 – AICPIN for November 2020 increased by 0.4 points appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

AI CPI(IW) and DA/DR

According to earlier Series the All India Consumer Price Index (AI CPI(IW)) for September 2020 was 340 points and for October 2020 it is 344 points.

Now, the Government has changed the base year for calculating the AI CPI(IW). According to the new Series, the AI CPI(IW) for September was 118 and for October it is 119.5 points. Real impact of this change on rate of IDA will be known only on 31-12-2020 when the Labour Bureau releases AICPI for November 2020.

Anyway, nobody will get any benefit as the DA/DR is frozen till June 2021. And, On 31-12-2020 we will know how much we will be losing from January to March 2021.

The Labour Bureau has Consumer Price Index for Industrial Workers (CPI-IW) for the month of October 2020 and the index increased by 1.4 points over the month. It has to be noted that the index is based on the new CPI-IW series with the base year 2016. The index rose marginally to 5.91 per cent in October from the 5.62 per cent in September and this is mainly due to higher prices of certain food items.

The index now stands at 119.5 for October 2020 and it was 118.1 for September 2020.

The Dearness Allowance for the Central Government Employees is calculated based on 12 months average CPI-IW index. For the Central public sector employees, the Dearness Allowance is calculated based on the average over the last three months.

Earlier, with CPI-IW index released with the base year 2001, the DA was calculated based on the formula

(Average of the All-India Consumer Price Index (Base year -2001 =100) for the last 12 months – 115.76)/115.76) x 100

However, with the new index with 2016 as the base year, this is all set to change. DA will be calculated till August 2020 based on the old series and subsequent increments will be based on the new series.

The DA for the month of August 2020 remains at 26.4. So the new index maybe 26.4 plus the average CPI-IW (base 2016) over 12 months.

As the government has frozen the Dearness Allowance hike till June 30, 2021, due to the COVID 19 pandemic, there is no question of the hike before that. The DA paid currently is 17% at December 2019 rates. A 4% hike for Expected DA from January 2020 was announced by the government but was not implemented due to the DA freeze order. However, the DA revision from July 1, 2021, will take into account these increments. Hence for illustrative purpose, based on the calculations on the CPI-IW indices over last one year, it can be said that the DA allowance form January 2021 will be approximately 27%.

The post Expected DA 2021 – Expected DA from January 2021 will be approximately 27% appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.