Revised CPI-IW likely to be released next week

by Nidhi Bhati

The revised consumer price index-industrial workers (CPI-IW), with base year changed to 2016 as against 2001 now, is likely to be released on 21 October 2020, as per a government official. The new index will impact inflation as well as dearness allowance (DA) calculation for 11 million government employees and pensioners. The CPI-IW, with the base year 2016, will give more weight to non-food items than the food ones compared to the 2001 index. The weight for food and beverages components is set to decline from 46 per cent to 39 per cent in the new series. On the other hand, the weight for non-food items such as education, health, entertainment and recreation, household goods and services, transport and communication is expected to rise to 30 per cent in 2016 from 23 per cent in 2001. As the prices of non-food items rise at higher rate than food items, the DA component of salaries of employees would see higher hike if new CPI-IW is taken into account than the existing one, the official added.