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CPI-IW Base Year Revised
Why is it in news?
- The Labour and Employment Ministry revised the base year of the Consumer Price Index for Industrial Workers (CPI-IW).
Details:
- The base year of CPI-IW is revise to 2016 from 2001.
- The change will reflect the changing consumption pattern.
- It will give more weightage to spending on health, education, recreation and other miscellaneous expenses.
- It will reduce the weight of food and beverages.
Consumer Price Index(CPI) and Its Types:
- CPI inflation is also called as retail inflation as the prices are quoted from retailers.
- Two Ministries- Ministry of Statistics and Programme Implementation (MOSPI) and Ministry of Labour and Employment (MOLE) are engaged in the construction of different CPIs for different groups/sectors.
- Following are the various CPIs:
(1) CPI for all India or CPI combined.
(2) CPI for Agricultural Labourers (AL).
(3) CPI for Rural Labourers (RL).
(4) CPI for Industrial Workers (IW)
- The CPI(IW) and CPI(AL& RL) measures changes in the retail price of the basket of goods and services consumed by the specific occupational groups in the specific centres.
- CPI-IW is also used to regulate the dearness allowance (DA) of government staff and industrial workers, as well as to revise minimum wages in scheduled employments.