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Consumer Price Index for Industrial Workers CPI(IW)

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(Created page with "<p>The need for an all Indian middle class cost of living index was felt on several occasions in connection with the fixation and adjustments of emoluments of Central Governmen...")
 
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<p>The need for an all Indian middle class cost of living index was felt on
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<p>This index is the oldest among the CPI indices as its dissemination started
several occasions in connection with the fixation and adjustments of emoluments
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as early as in 1946. The history of compilation and maintenance of Consumer
of Central Government employees. The Central Statistical Organisation carried
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Price Index for Industrial workers owes its origin to the deteriorating economic
out a family living survey of urban middle class population during 1958-59 to
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condition of the workers post first world war which resulted in sharp increase
facilitate construction of middle class cost of living indices. On the basis of  
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in prices. As a consequence of rise in prices and cost of living, the provincial
this survey data, a cost of living index number named as CPI(UNME) on
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governments started compiling Consumer Price Index. The estimates were however
base1960=100 was compiled and published since 1961.</p>
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not satisfactory. In pursuance of the recommendation of Rau Court of enquiry,
<p>This index depicts the changes in the level of average retail prices of goods  
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the work of compilation and maintenance was taken over by government in 1943.
and services consumed by the urban segment of the population. The target group  
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Since 1958-59, the compilation of CPI(IW) has been started by Labour Bureau ,an
of this index was urban families who derived major portion of their income from
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attached office under Ministry of Labour &amp; Employment.</p>
non manual occupations in the non-agricultural sector.This index had a limited
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<p>Consumer Price Index Numbers for Industrial workers measure a change over
use as it was used for determining dearness allowances of employees of some
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time in prices of a fixed basket of goods and services consumed by Industrial
foreign companies working in India in service sectors such as airlines,  
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Workers. The target group is an average working class family belonging to any of  
communications, banking, insurance and other financial services. Release of
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the seven sectors of the economy- factories, mines, plantation, motor transport,  
Centre-wise monthly CPI (UNME) on the basis of 1984-85 =100 has been
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port, railways and electricity generation and distribution . CPI (IW) is
discontinued since April 2008 as per the recommendation of National Statistical
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currently calculated at base 2001=100 for 78 centres and prices are collected
Commission because of outdated base year and also deployment of field
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from 289 markets across these 78 centres. The previous base periods of the index
investigators for collection of price data for a broad based CPI (Urban) index.  
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have been 1944,1949,1960 and 1982=100. The 2001 index is a more representative
The Commission also decided that release of all-India linked CPI (UNME) would
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index than 1982 series CPI(IW) as its coverage of centres, markets and sample
continue till CPI (Urban) is brought out. The monthly linked all India CPI (UNME)
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size for coverage of working class family income &amp; expenditure survey is much
was being compiled by linking to CPI (IW) with base 2001=100 and taking CPI (UNME)
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more wider.. The index has a time lag of one month and is released on the last
as weights. This index was released with a time lag of two moths, usually during
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working day of the month. It is used for wage indexation and fixation of  
the third week of the month. The release of all-India linked CPI(UNME) has been
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dearness allowance for government employees.</p>
discontinued with effect from January 2011.</p>
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==References==
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#http://www.labourbureau.gov.in/
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#http://www.mospi.nic.in/
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Revision as of 14:44, 20 August 2011

This index is the oldest among the CPI indices as its dissemination started as early as in 1946. The history of compilation and maintenance of Consumer Price Index for Industrial workers owes its origin to the deteriorating economic condition of the workers post first world war which resulted in sharp increase in prices. As a consequence of rise in prices and cost of living, the provincial governments started compiling Consumer Price Index. The estimates were however not satisfactory. In pursuance of the recommendation of Rau Court of enquiry, the work of compilation and maintenance was taken over by government in 1943. Since 1958-59, the compilation of CPI(IW) has been started by Labour Bureau ,an attached office under Ministry of Labour & Employment.

Consumer Price Index Numbers for Industrial workers measure a change over time in prices of a fixed basket of goods and services consumed by Industrial Workers. The target group is an average working class family belonging to any of the seven sectors of the economy- factories, mines, plantation, motor transport, port, railways and electricity generation and distribution . CPI (IW) is currently calculated at base 2001=100 for 78 centres and prices are collected from 289 markets across these 78 centres. The previous base periods of the index have been 1944,1949,1960 and 1982=100. The 2001 index is a more representative index than 1982 series CPI(IW) as its coverage of centres, markets and sample size for coverage of working class family income & expenditure survey is much more wider.. The index has a time lag of one month and is released on the last working day of the month. It is used for wage indexation and fixation of dearness allowance for government employees.


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