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%