Consumer Price Index for Industrial Workers

Why in news?

• The base year of CPI IW has been changed from 2001 t0 2016.

About CPI-IW:

• Consumer Price Index for Industrial Worker (CPI-IW) is compiled and maintained by Labour Bureau, an attached office of Ministry of Labour& Employment.
• The new series covers 317 markets spread across a total of 88 industrially important centres as against  289 markets in 78 centers in the 2001 series.
• The number of items directly retained in the index basket has increased to 463 items as against 392 items in the 2001 series.
• The number of States/UTs has increased to 28 under 2016 series as against 25 in the 2001 series.
• Weightage of various items in the new and old series are as follows:

• CPI IW is primarily used for wage indexation and fixation of dearness allowance for government employees.
• The base year for inflation gauges is typically changed from time to time to capture the changes in the economy including changes in consumption patterns.

PRELIMS QUESTION

Consider the following statements regarding Consumer Price index- industrial worker (CPI-IW):
1.In India it is compiled by Labour bureau.
2.It is  used for fixation of dearness allowance for government employees.
Which of the statements given above is/are correct?
(a)1 only
(b)2 only
(c)Both 1 and 2 
(d)Neither 1 nor 2

Answer to prelims question