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AICPIN – All India Consumer Price Index

All India Consumer Price Index (AICPIN) – Comprehensive Overview

The All India Consumer Price Index (AICPIN) is a key economic indicator published by the Labour Bureau, Ministry of Labour and Employment, Government of India. It measures changes in the prices of goods and services consumed by households, reflecting inflation trends and serving as a foundation for calculating Dearness Allowance (DA) for government employees.

Consumer Price Index Numbers for Industrial Workers (CPI-IW) on Base 2016=100

The Labour Bureau has been compiling the Consumer Price Index for Industrial Workers (CPI-IW) since 1944, evolving through several revisions to align with changing economic and consumption patterns:

  • Base Years Over Time:
    • 1944–1949
    • 1949–1960
    • 1960–1982
    • 1982–2001
    • 2001–2016
  • Current Base Year: The latest base year, 2016=100, has been effective since September 2020, offering a modernized approach to capturing retail price dynamics.

Role and Purpose of CPI-IW

  1. Retail Price Measurement: The CPI-IW tracks changes in the retail prices of a fixed basket of goods and services consumed by industrial workers over time.
  2. Wage and Allowance Regulation: It serves as a benchmark for regulating wages and calculating Dearness Allowance for millions of workers and employees in the country.
  3. Inflation Monitoring: The index is a reliable tool for assessing inflation trends and aiding in policy formulation.
  4. Housing Index Compilation: The Labour Bureau conducts Repeat House Rent Surveys at 88 centers nationwide. Data is collected bi-annually (January–June and July–December) to create a Housing Index, an integral part of CPI-IW.

Technical Details and Survey Methodology

The Technical Advisory Committee on Statistics of Prices and Cost of Living (TAC on SPCL) oversees the surveys and approves the methodologies for compiling the index. The Labour Bureau also collects and compiles monthly Retail Price Indices for 31 selected commodities in urban areas from the 88 designated centers. These indices are shared with the Ministry of Consumer Affairs, Food & Public Distribution for monitoring prices and taking timely remedial measures to regulate essential goods’ costs.

Key Features of the AICPIN

  • Frequency: Indices are released monthly. For example, the index of the previous month is released on the last day of the ongoing month.
  • Coverage: The AICPIN includes data from urban and rural households, with a special focus on industrial workers.
  • Significance: It helps monitor price stability, regulate wages, and support economic planning.

Conclusion

The All India Consumer Price Index (AICPIN), particularly the CPI-IW on base 2016=100, is a cornerstone of India’s economic framework. By providing a comprehensive view of price changes and their impact on households, it informs policy decisions, supports inflation monitoring, and ensures fair wage adjustments.

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AICPIN Data