31 May, 2023 9:56p.m.

With April CPI-IW released, 45% Dearness Allowance from July 2023


The Ministry of Labour and Employment's Labour Bureau recently released the All-India Consumer Price Index for Industrial Workers (CPI-IW) for April 2023. The CPI-IW is a crucial indicator that measures the inflation experienced by industrial workers across the country. In this blog post, we will delve into the latest CPI-IW figures and discuss its implications, particularly for central government employees who rely on these numbers for the calculation of their Dearness Allowance (DA).

April 2023 CPI-IW: A Slight Increase

According to the Labour Bureau's report, the All-India CPI-IW for April 2023 recorded a modest increase of 0.9 points, reaching a total of 134.2 points. This figure is compared to the CPI-IW of 133.3 points in March 2023. The CPI-IW is compiled by the Labour Bureau by collecting retail prices from 317 markets spread across 88 industrially significant centers in India.

Food & Beverages Group: The Key Contributor

When analyzing the components of the CPI-IW, the report highlights the significant contribution of the Food & Beverages group, which exerted the maximum upward pressure on the index. This group alone accounted for a 0.39 percentage point increase in the overall change. This indicates that food prices played a crucial role in shaping the CPI-IW for April 2023.

DA Hike Expected from July 2023

One of the key takeaways from the April 2023 CPI-IW figures is the positive impact it will likely have on the Dearness Allowance (DA) of central government employees. The DA for these employees is calculated based on the 12-month average CPI-IW index. The upcoming DA hike, effective from July 2023, requires the inclusion of two more months of CPI-IW figures, namely May 2023 and June 2023.

Estimated 3% to 4% Increase in DA

Based on the available CPI-IW figures, it is estimated that the DA from July 1, 2023, will witness a 3% to 4% increase.

Read: DA Hike from July 2023: Will it be 3% or 4%? Find Out Now!"

This news comes as a relief to central government employees who have been grappling with the rising cost of living. The DA hike will provide them with some respite from the financial challenges posed by inflation.


The release of the April 2023 Consumer Price Index for Industrial Workers (CPI-IW) sheds light on the economic situation faced by industrial workers across India. The slight increase in the CPI-IW, primarily driven by the Food & Beverages group, signifies the impact of rising food prices. However, the positive news lies in the expected 3% increase in the Dearness Allowance (DA) for central government employees from July 2023, based on the 12-month average CPI-IW index. This increase will alleviate some of the financial burdens faced by these employees in the face of inflation.

Read: DA Hike from July 2023: Will it be 3% or 4%? Find Out Now!"


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