29 Oct, 2021 9:45p.m.

September AI CPI-IW at 123.3, Expected DA from January 2022 is 33%


The All-India CPI-IW for the month of September 2021 increased by 0.3 points and stood at 123.3 (one hundred twenty-three and point three). On 1-month percentage change, it increased by 0.24 per cent with respect to the previous month compared to an increase of 0.62 per cent recorded between corresponding months a year ago.

The Dearness Allowance for the Central Government Employees is calculated based on 12 months average CPI-IW index. The indices of three more months are required for the calculation of the Dearness allowance from January 2021.

Consumer Price Index Numbers for Industrial Workers - CPI(IW) 2016=100
Jan '21 118.2   July '21 122.8
Feb '21 119.0 Aug '21 123.0
Mar '21 119.6 Sep '21 123.3
Apr '21 120.1 Oct '21  
May '21 120.6 Nov '21  
June '21 121.7 Dec '21  

The DA is calculated with the following formula 

DA  = (A  – 261.4)*100/(261.4)

Where A = Avg of CPI-IW (base 2016=100) for the past 12 months x linking factor of 2.88

This linking factor will have to be used to convert CPI (IW)  new series index to the previous series on base 2001=100.

Even though it is too early for the calculation, it can be said that with a rise of the index by 0.2 points every month, the DA from the month of January 2022 will be 33%, a hike of 2%. Slightly higher inflation can push it to 34%


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