AICPIN – All India Consumer Price Index

The All India Consumer Price Index (AICPIN) is a measure of the average change in prices of goods and services consumed by households in India. It is an important economic indicator used to track inflation and calculate dearness allowances for government employees.


The AICPIN is published by the Labour Bureau, Ministry of Labour and Employment, Government of India. The index is based on the price movements of a basket of goods and services commonly consumed by urban and rural households across the country.

The AICPIN is calculated using a weighted average formula, where the prices of different items are assigned different weights based on their importance in the household budget. The index is updated on a monthly basis, with the base year currently set at 2016.

The AICPIN is divided into two separate indices: one for industrial workers and another for rural workers. The industrial workers’ index covers workers employed in factories, mines, and plantations, while the rural workers’ index covers agricultural and non-agricultural laborers in rural areas.

The AICPIN is used for various purposes, including:

  • Calculating dearness allowances for government employees, which are adjusted based on changes in the AICPIN.
  • Monitoring inflation trends and price stability in the economy.
  • Formulating and evaluating monetary and fiscal policies.
  • Estimating the impact of price changes on the purchasing power of households.

The AICPIN is an important tool for policymakers, economists, and researchers to understand and analyze the impact of price changes on the standard of living of households. It provides valuable insights into the cost of living and helps in formulating policies to address inflationary pressures and ensure the welfare of the population.

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