CPI-IW for February 2022 down marginally. DA from July 2022 to be 37%

The All-India CPI-IW for February 2022 decreased by 0.1 points to 125 points from 125.1 points in January this year.  

According to a labour ministry statement, inflation based on the consumer price index for industrial workers (CPI-IW) was 4.48 per cent in February 2021. Retail inflation for industrial workers fell to 5.04 per cent in February from 5.84 per cent in January, owing primarily to lower food prices.

Consumer Price Index for Industrial Workers every month is computed on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country. The Labour Bureau, an attached office of the Ministry of Labour & Employment is responsible for compiling the data.

The All-India CPI-IW is used for the calculation of the Dearness Allowance (DA) for the central government employees and the Dearness Relief (DR) for the central government pensioners. It is based on the average of the previous 12 months' indices. Read: New DA calculation formula as per the AI CPI-IW series with base 2016

The reduction is a minor one and will not impact the Dearness Allowance considerably, The CPI-IW for the month of February 2022 will be used for the calculation of the Dearness Allowance from July 2022 and four more indices are required for this.

However, as per the available indices, it can be stated that the Dearness Allowance from the month of July 2022 will be 34%. After the announcement of January 2022 DA, this will be the looked after Central Government News

Check out the expected Dearness Allowance from July 2022 Calculator here