CPI-IW for May 2002 again rises by 1.3 pts. 38% DA from July 2022

The All-India CPI-IW (consumer price index-industrial workers) for May 2022 increased by 1.3 points to 129 points. Retail inflation for industrial workers rose to 6.97 per cent in May from 6.33 per cent in April this year, mainly due to higher prices of certain food items, according to an official statement. The All-India CPI-IW figures are used for calculating the Dearness Allowance for the Central Government Employees. 

"Year-on-year inflation for the month (May) stood at 6.97 per cent compared to 6.33 per cent for the previous month and 5.25 per cent during the corresponding month a year before," the Ministry of Labour and Employment said.

Food inflation stood at 7.92 per cent against 7.05 per cent in the previous month and 5.26 per cent during May 2021. The maximum upward pressure in the current index came from the Food and Beverages group, which contributed 0.79 percentage points to the total change, it said.1

Based on the 12-month average of the CPI-IW index, the Dearness Allowance for Central Government Employees is computed. There is only one more month's CPI-IW data needed to calculate the DA for July 2022, that of June 2022 which will be released on July 31. However, based on the data available, it is sure that the Dearness Allowance (DA) will rise by 4% on July 1, 2022. Central government employees would be relieved to hear this, as they have been feeling the effects of rising prices

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