AI CPI-IW for May up by 2 points, stands at 228. 10% DA hike from July'13 certain

The all-India consumer price index for industrial workers (CPI-IW) rose by 2 points to 228 for the month of May 2013. This was an increase of 0.88 per cent from the previous month. The increment was 0.49 per cent between the same two months an year-ago period.

Consumer price inflation for industrial workers based on the consumer price index for industrial workers (CPI-IW) stood higher at 10.68 per cent in May 2013 compared with 10.24 per cent in the previous month and 10.16 per cent during the corresponding month of the previous year.

Similarly, consumer price inflation based on food prices also stood higher at 13.24 per cent in May 2013 against 12.39 per cent in the previous month and 10.61 per cent during the corresponding month of the previous year.

With the 11 of the 12 indices available for the calculation for the Dearness Allowance for the Central Government Employees, it is now certain that the DA from the month of July 203 will be 90% - a hike of 10%

Even if the calculation of the DA is based on the AI CPI-IW indices, the hike in the dearness allowance will be announced only after the cabinet approval. This likely to happen in the month of September.