: Base year for Consumer Price Index for Industrial Workers revised to 2016 #FinanceIndia #StockMarketNEWS Base year for Consumer Price Index for Industrial Workers revised to 2016 New Delhi, Oct 23

@StockMarketNEWS Wed 28 Oct, 2020

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Base year for Consumer Price Index for Industrial Workers revised to 2016 #FinanceIndia #StockMarketNEWS
Base year for Consumer Price Index for Industrial Workers revised to 2016 New Delhi, Oct 23 (KNN) The government has revised the base year of Consumer Price Index (CPI) for Industrial Workers (CPI-IW) fr0m the present 2001 to 2016 after a gap of 15 years.

The new series of CPI (IW) with base 2016-100 will replace the existing series with base 2001-100.

The CPI-IW is used primarily for measuring the dearness allowance (DA) payable to workers in the organised sector, including PSUs, banks and insurance companies, besides government employees. It also provides inputs to government in macro policy planning

As per the norm, the base year of price index numbers should be revised at frequent intervals, generally not exceeding 10 years to reflect the changes that take place in the consumption pattern of consumers.

Union Labour Minister Santosh Gangwar lauded the efforts of the Labour Bureau for their steadfastness and exemplary role which have finally culminated in the release of updated series of CPI (IW).

While lauding the efforts, the minister mentioned that data on all aspects of labour is crucial to serve as inputs in policy making and this justifies the existence of an organization like Labour Bureau, dedicated to labour and price statistics.

With the ever increasing importance of data in the times to come coupled with the fact that India is a labour abundant nation, a dedicated organization for labour and price statistics like the Labour Bureau merits strengthening, he added.

While addressing media persons on this occasion both minister & Secretary (L&E) said that the Labour Bureau is making impressive strides on all the fronts. It has a rich legacy of producing quality labour statistics, the roots of which can be traced to its establishment in 1920.

Most importantly, Labour Bureau has initiated three big surveys on Employment generated by Professionals and non-formal transport sector, Migrant workers and Domestic workers," they said.

The Labour Bureau has also been mandated with the task of collection of data on recently proposed four labour codes. Both minister & Secretary (L&E) assured to give all possible support to the Labour Bureau in its future endeavours.

The CPI-IW will give more weight to non-food items than the 2001 index. The weighting for food and beverages components is set to decline fr0m 46 per cent to 39 per cent in the new series.

On the other hand, the weighting for non-food items such as education, health, entertainment and recreation, household goods, and services, transport and communication is slated to jump fr0m 23 per cent in 2001 to 30 per cent in 2016.

Gangwar also released the maiden index with base year 2016 for the month of September, 2020.