November CPI-IW released. 3% DA hike from January 2025

Labour Bureau has released the CPI-IW for November 2024, indicating a higher chance of 3% as the possible DA hike for the central government employees in January 2025.

The All-India CPI-IW for November 2024 remained stationary at 144.5 points.  The year-on-year inflation rate based on CPI-IW (General) for November 2024 is 3.88%, which is lower than the 4.98% recorded in November 2023. This suggests a slight moderation in inflation.

Based on this data, StaffCorner.com is predicting a potential DA hike of around 3% for government employees in January 2025. 

The Dearness Allowance (DA) is typically calculated based on the average CPI for the previous 12 months. Since the CPI data for December 2024 is not yet available, the government cannot finalize the DA hike for January 2025.

The government will announce the DA hike for January 2025 after the CPI data for December 2024 is released, which is expected to happen in February 2025.

What is CPI-IW?

CPI-IW stands for Consumer Price Index for Industrial Workers.  

Here's what it signifies:

• Measures Inflation: It tracks the changes in the prices of a basket of goods and services typically consumed by industrial workers over time. This basket includes items like food, clothing, housing, transportation, and more.  
• Key Indicator: CPI-IW is a crucial indicator of inflation in India.
• Used for DA Calculations: The government primarily uses CPI-IW to determine the Dearness Allowance (DA) for employees in both the public and private sectors. DA is a cost-of-living adjustment meant to offset the impact of inflation on workers' salaries.  

In essence, CPI-IW helps gauge how much the cost of living has increased for industrial workers and informs adjustments to their salaries to maintain their purchasing power.  

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