All India Consumer Price Index for Industrial Workers (CPI-IW)for the month of September 2020 (New Base 2016=100 – 118 Points)
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 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 Labour Organisation (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.
The All-India Consumer price Index Numbers for Industrial Workers (CPI-IW) for the month of September, 2020 is released on New Base: 2016=100. The maiden index on new base for 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 Increased in two points)
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.