Consumer Price Index Numbers for Industrial Workers - Centre wise CPI(IW) report for the month of October 2013

Consumer Price Index Numbers for Industrial Workers - Centre wise CPI(IW) report for the month of October 2013

 The CPI-IW series on scientific lines was first introduced with base 1960=100 which was based on the results of Family Living Survey conducted in 1958-59 at 50 industrially important centres. The series was then, updated on base 1982=100 and a revision in 1999-2000 has further updated the base on 2001=100. The current series of CPI-IW  with base year 2001=100 covers 78 industrially important centers spread across the country.

The current series of CPI-IW with base 2001=100 was constructed on the basis of employment data in seven sectors namely, Registered Factories, Mining, Plantations, Ports & Docks, Public Motor Transport, Electricity Generation & Distribution Establishments and Railways sector. The current series comprises of a basket of about 370 items and 289 price collection markets spread across 78 centres of the country. In the existing series, the Working Class Family Income & Expenditure Survey was conducted during 1998-99 by the NSSO and a sample size of 41040 family budget schedules and 15960 house rent schedules (i.e. about a total of 57000 schedules) were canvassed from 78 industrially important centres of the country. The price collection work was done by the Labour Bureau and the main survey work of income & expenditure data collection was conducted by NSSO.

In line with the recommendations of Index Review Committee (IRC), the possibilities of extending the  scope of the new series to two more additional sectors i.e. Handloom and Construction sectors are being considered. However, Labour Bureau expects an increase in the number of centres from existing 78 centres to around 88-95 centres approximately. Consequently, the total number of family budget enquiry schedules and house rent schedules to be canvassed would increase to 70,000 schedules approximately.

CPI(IW) Base 2001=100 Monthly Index Letter - OCTOBER 2013

CENTRE-WISE CPI(IW)

State	Sr. No.	Centre	Sep. 2013	Oct. 2013
AP	1	GODAVARIKHANI	243	247
	2	GUNTUR	243	244
	3	HYDERABAD	211	212
	4	VIJAYAWADA	239	242
	5	VISHAKHAPATANAM	247	247
	6	WARRANGAL	252	253
ASM	7	DOOM DOOMA- TINSUKIA	200	204
	8	GUWAHATI	204	207
	9	LABAC- SILCHAR	225	233
	10	MARIANI-JORHAT	197	202
	11	RANGAPARA- TEZPUR	190	195
BIH	12	MONGHYR- JAMALPUR	244	249
CHD	13	CHANDIGARH	239	240
CHS	14	BHILAI	272	275
DLH	15	DELHI	216	218
GOA	16	GOA	247	247
GUJ	17	AHMEDABAD	237	245
	18	BHAVNAGAR	223	232
	19	RAJKOT	231	235
	20	SURAT	224	231
	21	VADODARA	226	233
HRY	22	FARIDABAD	218	221
	23	YAMUNANAGAR	231	233
HP	24	HIMACHAL PRADESH	215	217
J & K	25	SRINAGAR	208	208
JRK	26	BOKARO	232	238
	27	GIRIDIH	293	299
	28	JAMSHEDPUR	260	264
	29	JHARIA	269	274
	30	KODARMA	270	278
	31	RANCHI HATIA	275	281
KNT	32	BELGAUM	249	246
	33	BENGLURU	243	246
	34	HUBLI DHARWAR	255	254
	35	MERCARRA	247	245
	36	MYSORE	252	253
KRL	37	ERNAKULAM	229	231
	38	MUNDAKAYAM	255	256
	39	QUILON	242	247
MP	40	BHOPAL	245	248
	41	CHHINDWARA	251	248
	42	INDORE	227	229
	43	JABALPUR	237	239
MHR	44	MUMBAI	244	248
	45	NAGPUR	274	276
	46	NASIK	247	247
	47	PUNE	242	243
	48	SHOLAPUR	245	245
ORI	49	ANGUL-TALCHER	245	248
	50	ROURKELA	254	255
PND	51	PONDICHERRY	243	242
PUN	52	AMRITSAR	246	251
	53	JALANDHAR	230	231
	54	LUDHIANA	228	233
RJN	55	AJMER	238	238
	56	BHILWARA	246	247
	57	JAIPUR	232	237
TN	58	CHENNAI	221	223
	59	COIMBATORE	220	220
	60	COONOOR	228	230
	61	MADURAI	220	226
	62	SALEM	223	222
	63	TIRUCHIRAPALLY	236	236
TRP	64	TRIPURA	203	209
UP	65	AGRA	247	249
	66	GHAZIABAD	241	244
	67	KANPUR	246	247
	68	LUCKNOW	233	233
	69	VARANASI	242	245
WB	70	ASANSOL	265	269
	71	DARJEELING	222	227
	72	DURGAPUR	273	277
	73	HALDIA	236	236
	74	HOWRAH	219	224
	75	JALPAIGURI	230	236
	76	KOLKATA	230	236
	77	RANIGANJ	220	224
	78	SILIGURI	225	231
		ALL INDIA INDEX	238	241

Source: http://90paisa.blogspot.in/2013/12/consumer-price-index-numbers-for.html

Expected DA from Jan 2014 - AICPIN for the month of October 2013

Expected DA from Jan 2014 - AICPIN for the month of October 2013
Consumer Price Index Numbers for Industrial Workers (CPI-IW) October 2013

Press Information Bureau
Government of India
Ministry of Labour & Employment

29-November-2013 18:49 IST

Consumer Price Index Numbers for Industrial Workers (CPI-IW) October 2013

According to a press release issued by the Labour Bureau, Ministry of Labour & Employment the All-India CPI-IW for October, 2013 rose by 3 points and pegged at 241 (two hundred and forty one). On 1-month percentage change, it increased by 1.26 per cent between September and October compared with 0.93 per cent between the same two months a year ago.

The largest upward pressure to the change in current index came from Food group contributing 2.53 percentage points to the total change. At item level, Rice, Wheat Atta, Fish Fresh, Goat Meat, Milk (Cow & Buffalo), Pure Ghee, Onion, Vegetable items, Tea Readymade, Electricity Charges, etc.. are responsible for the rise in index. However, this was compensated to some extent by Groundnut Oil, Ginger, Petrol, putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 11.06 per cent for October, 2013 as compared to 10.70 per cent for the previous month and 9.60 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 15.02 per cent against 13.36 per cent of the previous month and 9.91 per cent during the corresponding month of the previous year.

At centre level, Bhavnagar recorded the highest increase of 9 points each followed by Ahmedabad, Labac Silchar and Kodarma (8 points each) and Vadodara and Surat (7 point each). Among others, 6 points rise was registered in 8 centres, 5 points in 10 centres, 4 points in 8 centres, 3 points in 9 centres, 2 points in 10 centres and 1 point in 11 centres. On the contrary, Belgaum and Chhindwada centres reported a decline of 3 points each followed by Mercara (2 points) and Salem, Hubli Dharwar and Puducherry (1 point each). Rest of the 15 centres’ indices remained stationary.

The indices of 39 centres are above All-India Index and other 38 centres’ indices are below national average.

The next index of CPI-IW for the month of November, 2013 will be released on Tuesday, 31 December, 2013.

Source: www.labourbureau.gov.in

Dearness Allowance linked to Consumer Price Index against inflation

Dearness Allowance linked to Consumer Price Index against inflation

General Secretary of Confederation for Karnataka State Shri P.S.Prasad has written an article on his blog about the Consumer Price Index for the purpose of calculating Dearness allowance to Central Government employees and Pensioners...

The detailed report of article has been reproduced and given below for your information...

DA & CPI UNDER ATTACK

The Consumer Price Index is the main base for calculation of Dearness Allowance for the Central Government and State Government Employees and also the Industrial and Bank Employees.

The Consumer Price Index (CPI) is calculated using following steps:

a) Market prices are collected for 252 items by the Officials of Department of Statics and Department of Posts. These prices of that item & place are sent to Central processing unit from 78 centres all over India ( which are enclosed for your reference).

b) The all India weights given the each category of items such as food 49.71%, housing 9.77 %, fuel 9.49% , footwear O.68%, transportation 7.5%, Medical 5.31%, Personnel care 2.92 % & Miscellaneous 26.31% total 100% . CPI points are determined using this all India weights and prices of the 252 items. (which are enclosed for your reference).

Now from the angle of Employees point of view following changes in all India weights should be brought.

a) Housing should be given as 15% instead of just 9.77 %.

b) Medical should be increased to 15% from 5.31 %.

c) The Miscellaneous items should be reduced to just 5% instead of 26.31 %

The prices have risen by over 200% in last 61/2 years, whereas the CPI has shown an increase from 115 points in Jan 2006 to 235 points in July 2013 that means an increase of 120 points and the actual DA is only 92%. There is fault in the calculation of CPI itself apart from present DA formula , as undue all India weights is given for some items such as miscellaneous items such as 26% whatever increase in prices of the food, fuel, transportation, housing are nullified by these 26% decrease in prices or marginal increase in miscellaneous items.

The Employees are not getting the right DA and thus they are not compensated by the real increase in prices which are used for daily needs.

A new series for the calculation of the Consumer Price Index is under preparation by the Government of India. For this purpose, Government has set up a Standing Tripartite Committee (STC) to advise the Government on issues pertaining to the Consumer Price Index for Industrial Workers (New Series).

There are two aspects in this move we should be doubly carefull.

1) There is vast difference between the real price increase and CPI thus an Employee is deprived of the real DA.

2) The Government of India is thinking that the CPI is bloated or wrong that has made burden on the financial burden on them hence it wants to reduce its expenditure by modifying the CPI as a result of this what DA we used to get 10% half yearly and this year by 20%, this can be avoided by next year, hence it is seriously considering the aspect of revising the All India weights of many items such as food which is at 59% to 30%. By this the whole CPI increase will be limited to just 8 to 9 points in a year rather than 25 points in a year by this we get only 3 to 4 % DA every six months rather than 10% DA which we are used to get due to high inflation and drastic rise in prices.

Now the statements issued by Government of India officials ie Reserve Bank Governor Shri D.Subbarao & Shri Kaushik Basu, Chief Economic Advisor, Ministry of Finance, which is enclosed indicate this stand. Instead of employees friendly CPI they want a Government of India friendly CPI.

The wages of CG employees are determined by principle of need based minimum wages as per table 2.21 of 6th CPC report where in only a few items are chosen rather than 252 items chosen by CPI.

I request one and all to be serious about this issue otherwise the Employees will suffer in a long run regarding wrong calculation of CPI and DA issue.

Comradely yours

(P.S.Prasad)

General Secretary

9480066620.

Please find enclosures ;

Ministry of Labour and Employment, Government of India has decided to prepare a new series of Consumer Price Index for Industrial Workers.

For this purpose, Government has set up a Standing Tripartite Committee (STC) to advise the Government on issues pertaining to the Consumer Price Index for Industrial Workers (New Series).

The STC will go into details of various parameters that are taken into consideration for updation of the base year such as the weighting diagram. consumption basket, selection of centres, sample size of establishments for price collection etc.

Government has no specific information about the skilled/semi-skilled worker outsourced by the Central Government /State Governments through contractors not being paid as per the CPI.

However, the Contract Labour Act, 1970 inter-alia, contains provisions for payment of wages to these category of workers.

The contract workers are also entitled to receive minimum wages as notified by the appropriate Governments from time to time.

This information was given by Minister of State for Labour & Employment Shri Kodikurinil Suresh in the Lok Sabha today in reply to a written question.

MUMBAI: The new series of consumer price index (CPI) is not enough for a robust statistical analysis of prices, Reserve Bank Governor D Suhharao said on Friday.

He also said the new CPI has an excess focus on food prices, which has a 50% weight. House rents, which account for 10%, are also a cause for concern given doubts over the efficacy of the prices, he added.

“The new CPI has only 19 data points which is not sufficient for a statistically robust analysis,” Subbarao, who demits office on September 5, said while speaking at the Statistics Day conference at the RBI headquarters here.

Dearness allowance link brings retail inflation figures under cloud

SMRITI SETH, ET Bureau Jul 19, 2011. 0347am 1ST.

http:/Iarticles.econom ictimes.indiatim es.com/20 11-07-1 9/news129790925_1 _cpi-iwretail-inflation-wpi-ancl-cpi

NEW DELHI There could be a systemic over-estimation of the retail inflation as measured by the consumer price index for industrial workers, or CPI-1W, as it forms the basis for revision in the dearness allowance of central government employees.

This retail measure of inflation has generally shown a wide divergence with the widely followed wholesale price index (WPI) inflation. “Since the people who collect data for the CPI get their salaries indexed by the same index it actually feeds into some tendency to bloat that,” said Kaushik Basu, Chief Economic Advisor, Ministry of Finance. The CPI-IW is compiled by the Labour Bureau and investigators are employed by state governments - directorate of economics and statistics - to collect the prices.

The index is used to decide the dearness allowance of central government employees, which creates the incentive for bloating up the index. ‘We have found a couple of items that occur in both the WPI and CPI collected by different agencies. We are now tracking these two to see it there is any bias in them. But there are no results as yet,” Basu said. “A team at the ministry of finance is looking at various aspects of inflation, this is one thing we are indeed looking at,” he said. The labour bureau has strongly denied any such possibility and insisted there was no form of manipulation whatsoever.

“Our system is fool proof, there are multiple levels of checks. There is no bias in the data collected,” said an official at the Labour Bureau. Even experts are skeptical of the possibility of such widespread coordination between all those involved in the process. “It may be true and there is an incentive to do that (unfairly bloat the CPI-IW), but one can’t say that without empirical prool “. said Arup Mura, labour and employment professor, IEG.

This needs a nexus, because unless all the officials coordinate it won’t be possible,” added Mitra. The CPI-IW and WPI have shown vastly diverging trends through the years. During 2009, when inflation rate as per the CPI-IW was actually rising above 11%, the WPI inflation rate was falling to negative rates.

Since January 1, 2008 the rate of dearness allowance for central government employees has risen from 12% to 51%, an increase of 39 percentage points. According to a Patnaik, professor, NIPFP, the divergence can be explained by the difference in baskets used for both the indices. She dismissed the collectors’ bias theory, saying, “in a study, we found that the prices for a particular commodity reported under CPI is in line with other sources like the NCDEX, ministry of agriculture data. So evidence doesn’t suggest a bias,” said Patnaik.

CPI—AII India weights -2011
See website:
http://mospi.nic.in/Mospi_New/upload/brochure_n_cpi18_feb11.pdf

Sl. No	Sub group/ Item	Rural	Urban	Combined  (Rural+Urban)
FOOD ITEMS
01	Cereals and products	19.08	8.73	14.59
02	Pulses and products	3.25	1.87	2.65
03	Milk and milk products	8.59	6.61	7.73
04	Oils and fats	4.67	2.89	3.90
05	Egg, fish and meat	3.38	2.26	2.89
06	Vegetables	6.57	3.96	5.44
07	Fruits	1.90	1.88	1.89
08	Sugar etc	2.41	1.26	1.91
09	Condiments and spices	2.13	1.16	1.71
10	Non- alcoholic beverages	2.04	2.02	2.03
11	Prepared meals etc	2.57	3.17	2.83
12	Pan, tobacco and Intoxicants	2.73	1.35	2.13
	Food, beverages and tobacco	59.31	37.15	49.71

Sl. No	Sub group/ Item	Rural	Urban	Combined  (Rural+Urban)
Miscellaneous Items
01	Fuel and light	10.42	8.40	9.49
02	Clothing and bedding	4.60	3.34	4.05
03	Footwear	0.77	0.57	0.68
04	Housing	Nil	22.53	9.77
05	Education	2.71	4.18	3.35
06	Medical care	6.72	4.34	5.69
07	Recreation and amusement	1.00	1.99	1.43
08	Transport and communication	5.83	9.84	7.57
09	Personal care and effects	3.05	2.74	2.92
10	Household requisites	4.48	4.30	4.40
06	Miscellaneous	24.91	28.00	26.31

From the above it is quite clear there is no weightage for rural housing & Miscellaneous weightage is much more than required.

Which is effecting DA calculation.
List of 252 Items

Sl.No	ItemCode	Desc
1	101011	rice 1 (other than PDS)
2	101012	rice 2 (other than PDS)
3	101021	chira
4	101041	muri / murmura
5	101061	wheat (loose) -other than PDS
6	101062	wheat(loose)- other than PDS
7	101071	wheat atta(other than PDS)
8	101081	maida
9	101091	suji / rawa
10	101121	bread: bakery
11	101141	jowar
12	101151	jowar product (specify)
13	101181	maize
14	101241	ragi
15	101251	ragi product (specify)
16	101261	other cereals (specify)
17	101281	grinding charges18 102011 arhar/ tur
19	102021	gram: split
20	102031	gram: whole
21	102041	moong
22	102061	Urd
23	102101	other pulses (specify)
24	102131	other pulse products(specify)
25	103031	groundnut oil
26	103041	coconut oil (edible)
27	103051	other edible oil(saffola/ sunflower etc.) specify
28	104011	eggs
29	104021	fish (fresh)
30	104022	fish (fresh)
31	104023	fish (dry)
32	104031	goat meat / mutton
33	104041	beef
34	104051	buffalo meat
35	104071	chicken
36	105011	milk (pasteurized)
37	105013	milk (non-pasteurized -cow)
38	105051	curd
39	105061	ghee
40	105091	other milk products (specify)
41	106011	salt
42	106021	turmeric
43	106031	black pepper
44	106041	dry chillies
45	106051	tamarind
46	106061	curry powder
47	106071	oil seeds
48	106081	other spices: like jeera
49	106082	other spices: like dhaniya
50	107011	potato
51	107021	onion
52	107031	radish
53	107041	carrot
54	107061	beet
55	107091	pumpkin
56	107101	gourd
57	107111	bitter gourd
58	107121	cucumber
59	107141	jhinga, torai
60	107181	cabbage61 107191 brinjal
62	107201	ladys finger
63	107211	palak
64	107221	other leafy vegetables (specify)
65	107231	french beans
66	107251	tomato
67	107271	chillis: green
68	107311	lemon
69	107321	garlic
70	107331	ginger
71	107341	other vegetables(specify)
72	108011	banana
73	108031	watermelon
74	108051	coconut
75	108081	orange
76	108091	mausami
77	108111	mango
78	108171	apple
79	108181	grapes
80	108191	other fresh fruits (specify)
81	108201	coconut: copra
82	108211	ground nut
83	109011	sugar
84	109021	gur
85	110011	tea: leaf
86	110021	coffee: powder
87	111011	tea: cups
88	111021	coffee: cups
89	111071	coconut: green (tender)
90	111081	other beverages (specify)
91	111091	biscuits
92	111101	salted refreshments: specify
93	111102	salted refreshments: specify
94	111103	salted refreshments: specify
95	111111	prepared sweets: specify
96	111112	prepared sweets: specify
97	111113	prepared sweets: specify
98	111114	prepared sweets: specify
99	111121	cooked meals
100	111151	pickles
101	111161	sauce
102	111171	jam / jelly
103	111181	other processed food (corn flakes etc) specify
104	112011	pan: leaf
105	112031	supari
106	112071	bidi
107	112081	cigarettes (filtered)
108	112082	cigarettes (non- filtered)
109	112101	leaf tobacco
110	112151	other tobacco products (specify)
111	112201	foreign liquor/refined liquor(Indian made)
112	201021	firewood and chips
113	201031	electricity (std. unit)
114	201041	kerosene (open market)
115	201051	match box
116	201071	LPG cylinder (domestic)
117	201091	candle
118	201101	other fuel (specify)
119	401011	dhoti
120	401021	sari
121	401031	cloth for shirt
122	401032	cloth for pyjama
123	401034	cloth for blouse
124	401041	cloth for coat (woolen)
125	401042	cloth for pant/trousers
126	401061	lungi
127	401071	towel/gamchha
128	401081	vest/banian (gents)
129	401082	brief/underwear (gents)
130	401083	socks (gents)
131	401091	ready-made shirt
132	401092	ready made pant/trousers/jeans
133	401093	ready made skirt/ frock(child 6-10 years)
134	401094	ready made top (ladies)
135	401095	ready made salwar suit
136	401101	sweater/ pullover (gents)
137	401102	sweater/ cardigan (ladies)
138	401121	bed sheet
139	401131	blanket
140	401992	clothing others (specify)
141	401993	mats & matting
142	402011	leather shoes (gents)
143	402012	leather shoes (children)
144	402021	leather sandals/chappals (gents)
145	402022	leather chappals (ladies)
146	402023	leather sandals/chappals (children)
147	402031	rubber/ PVC footwear (gents)
148	402032	rubber/ PVC footwear (ladies)
149	402041	other footwear (sports shoes etc.) specify
150	402990	other leather footwear (specify)
151	501011	pain killer tablet (allopathic)
152	501012	cough syrup: coscopin plus (above 8 years of age)
153	501013	vitamin B complex: tablet
154	501014	anti fever tab. (allopathic)
155	501015	anti biotic tab (allopathic)156 501016 cough syrup (homeopathic)
157	501018	tonic (homeopathic)
158	501019	chavanprash
159	501021	X-ray(chest) Posterior to anterior view
160	501022	ECG
161	501023	lipid profile test
162	501024	blood sugar (fasting & pp) test
163	501031	doctor’s fee (first consultation)
164	501990	hospital/nursing home charges
165	501991	other medical expenses (specify)
166	502011	primary (5th class) mathematics book
167	502012	primary (5th class) science book
168	502013	primary (5th class) local language book
169	502014	secondary (10th class) mathematics book
170	502015	secondary (10th class) social science book
171	502016	secondary (10th class) science book
172	502017	first year (B.A.) economics book
173	502018	first year ( B. Com) accountancy book
174	502019	first year (B.Sc.) mathematics book
175	502021	newspapers: local
176	502022	news paper : national
177	502023	periodicals/magazines
178	502041	copy/ note book
179	502042	register
180	502043	pen
181	502044	pencil
182	502051	tuition fees (fifth class)
183	502052	tuition fees (tenth class)
184	502053	tuition fees (first year graduation)
185	502061	private tutor fee (primary)
186	502062	private tutor fee (secondary)
187	502063	coaching (professional courses fee)
188	502990	other educational expenses (specify)
189	503011	cinema: new release (normal day)
190	503021	foot ball
191	503022	cricket bat (regular size)
192	503023	lawn tennis racket for beginner
193	503024	carrom board194 503025 playing cards
195	503051	hiring charges for CD/DVD video cassettes
196	503061	monthly charges for cable TV connection
197	503071	transistor/satellite radio
198	503081	television
199	503992	other entertainment(specify)
200	504011	telephone charges: same operator
201	504021	mobile phone charges : same operator
202	504022	mobile phone charges : different operators
203	504061	taxi fare
204	504062	auto-rickshaw fare
205	504091	petrol
206	504101	diesel
207	504111	lubricating oil/engine oil
208	504121	school bus/van
209	504141	motor cycle (without accessories)
210	504142	scooter (without accessories) cost on road
211	504151	motor car (without accessories)
212	505051	toilet soap
213	505061	tooth brush (adult)
214	505062	tooth paste
215	505071	telcome powder
216	505072	snow / cream
217	505073	lipstick
218	505074	body lotion
219	505081	hair oil
220	505082	hair dye
221	505083	shampoo
222	505101	shaving blades
223	505102	shaving razor
224	505121	sanitary napkins
225	505131	other toilet articles: (freshener / perfume) specify
226	505141	flower (fresh)
227	506011	electric bulb
228	506012	tube light (without fitting)
229	506041	plastic bucket
230	506051	washing soap / detergent
231	506061	other washing requisite(brush/cleaner etc)
232	506071	agarbati
233	506081	mosquito repellant / insecticides
234	506091	other petty articles (broom etc.) specify
235	506101	domestic servant236 506121 miscellaneous expenses: photocopying charges
237	506122	other consumer services: driver (car)
238	506123	other consumer services: cleaner (car)
239	506124	other consumer services: cobbler(shoe repair)
240	506141	iron almirah
241	506181	gold
242	506201	stainless steel (cooking pot)
243	506202	stainless steel (plate)
244	506301	refrigerator
245	507011	hair cutting charges (gent)
246	507012	hair cutting charges (ladies)
247	507021	washerman / laundry
248	507022	ironing charges
249	507031	tailoring charges for gents pant:
250	507032	tailoring charge for gents shirt:
251	507033	tailoring charges for ladies suit:
252	507034	tailoring charges for blouse:

Source: www.karnatakacoc.blogspot.in

[http://karnatakacoc.blogspot.in/2013/09/da-cpi-under-attack.html]

Increase in rate of DA is in proportion to the increase in the rate of inflation

Increase in rate of DA is in proportion to the increase in the rate of inflation

The below statement was stated by Shri.Namonarain Meena in Lok Sabha in a written reply to a question on 3rd May, 2013 about the increase in the rate of Dearness allowance to Central Government employees is in  proportion to the increase in the rate of inflation.

As per the recommendations of the Sixth Central Pay Commission, the Dearness Allowance (DA) is given to Central Government employees in January and June every year based on last 12 month average of all India Consumer Price Index for Industrial Workers (2001=100). 

The build-up of CPI-IW inflation and Dearness Allowance (DA) since the commencement of Sixth pay commission is given below :-

Year	12 month average of CPI-IW (2001=100)	Build-up of CPI-IW inflation (%)	Annual Dearness Allowance (DA) (%)
2005	115.77	0.00	0
2006	122.92	6.18	6
2007	130.75	12.94	12
2008	141.67	22.37	22
2009	157.08	35.69	35
2010	175.92	51.96	51
2011	191.50	65.42	65
2012	209.33	80.82	80

The increase in the rate of DA to the Central Government employees is in proportion to the increase in the rate of inflation in the country. The fraction of inflation is carried forward.

The above statement was stated by Shri.Namonarain Meena in Lok Sabha in a written reply to a question on 3rd May, 2013.