No. 5/1/2016- CPI

Press Release

DATED: 31st October, 2016

Consumer Price Index for Industrial Workers (CPI-IW)- September, 2016
The All-India CPI-IW for September, 2016 decreased by 1 point and stood at 277 (two hundred and seventy seven). On 1-month percentage change, it decreased by (-) 0.36 per cent between August and September, 2016 when compared with the increase of(+) 0.76 per cent between the same two months a year ago.
The maximum downward pressure to the change in current index came from Food group contributing(-) 1.17 percentage points to the total change. At item level, Arhar Dal, Moong Dal, Masur Dal, Urd Dal, Fish Fresh, Eggs (Hen), Poultry (Chicken), Chillies Green, Onion, Brinjal, Cabbage, Carrot, Gourd, Green Coriander Leaves, Potato, Pumpkin, Tomato, Apple, Banana, Medicine (Allopathic), etc. are responsible for the decrease in index. However, this decrease was checked by Wheat, Wheat Atta, Gram Dal, Mustard Oil, Cauliflower, Parval, Radish, Coconut, Lemon, Tea (Readymade ), Snack Saltish, Private Tuition Fee, Petrol, etc.
The year-on-year inflation measured by monthly CPI-IW stood at 4.14 per cent for September, 2016 as compared to 5.30 per cent for the previous month and 5.14 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 4.05 per cent against 6.16 per cent ofthe previous month and 5.71 per cent during the corresponding month of the previous year. At centre level, Belgaum, Rajkot, Mumbai and Ahmedabad reported the maximum decrease of 4 points each followed by Ludhiana, Madurai, Agra, Chennai,
Warrangal, Bhilwara and Surat (3 points each). Among others, 2 points decrease was observed in 12 centres and 1 point in 18 centres. On the contrary, Angul-Talcher recorded a maximum increase of 7 points followed by Howarah and Amritsar (3 points each). Among others, 2 points increase was observed in 8′ centres and 1 point in 7 centres. Rest ofthe 19 centres’ indices remained stationary.
The indices of 33 centres are above All-India Index and other 41 centres’ . indices are below national average. The indices of Jabalpur, Lucknow, Pune and Bhopal centres remained at par with All-India Index.
The next issue of CPI-IW for the month of October, 2016 will be released on Wednesday, 30th November, 2016. The same will also be available on the office website in.


The Expected DA from January 2017 still have a possibility to touch 5% hike even after the September AICPIN decreased by 1 point from the Previous Months CPI Number. The Labour Bureau has released the AICPIN for the month of September 2016 yesterday. According to the labour bureau estimates The All-India CPI-IW for September 2016 decreased by 1 ;point and stood at 277 (two hundreden seventy seven)

There  is a possibility  that the DA hike from January 2017 to go contrary to our expectations if the AICPIN keep decreasing in coming months . But if it remain at 277 point without any change for coming three months, then it surely will hit the 5% mark in expected DA from January 2017 as per the revised DA formula in 7th CPC