November CPI-IW at 125.7, DA from January 2022 sure to be 34%

The Labour Bureau, under the M/o Labour & Employment, has published the All India Consumer Price Index for Industrial Workers (CPI-IW) for the month of November 2021. The All-India CPI-IW for the month of November 2021 increased by 0.8 points and now stands at 125.7 (one hundred twenty-five and point seven).

On a one-month percentage change basis, it climbed by 0.64 per cent over the previous month, compared to a 0.33 per cent gain between the same months a year ago. The Food & Beverage group exerted the most upward pressure on the current index, adding 0.82 percentage points to the overall change. The rise in index can be attributed to French-Bean, Kundru, Lady's finger, Tomato, Potato, Onion, Brinjal, Cabbage, Cooking Gas, Allopathic Medicine, Mobile Phone Charges, and other items.

The Dearness Allowance for Central Government Employees is calculated using the 12-month average of the CPI-IW index. Ony months' index, for December, is required for the calculation of the Dearness allowance commencing in January. Based on this data, it is plausible to forecast that the DA will be 34% in January 2022. The real calculation can only be done after the CPI-IW for December 2021 is released. This will only be available until the end of January 2022. The Central Government is likely to make the official announcement of the Dearness Allowance increase for January 2022 onwards in the month of March 2022 or April beginning. Employees in the federal government will be waiting with bated breath for this news. D A is expected to be 34 per cent in January 2022.

Try it yourself: Expected Dearness Allowance from January 2021 Calculator