CPI -IW

Subject: Economy

Context: Base year of Consumer Price Index for Industrial Workers revised from 2001 to 2016.

Concept:

Consumer Price Index or CPI is the measure of changes in the price level of a basket of consumer goods and services bought by households. CPI is a numerical estimation calculated using the rates of a sample of representative objects the prices of which are gathered periodically.

• The CPI captures changes in price level at the consumer level.
• Changes in prices at the producer level are tracked by the Wholesale Price Index (WPI).
• CPI can capture the change in the prices of services which the WPI cannot.

Various Indices of CPI are :

• CPI – Industrial Workers (CPI -IW): It tries to measure the alterations over a time period on the prices of a fixed basket of goods and services utilised by Industrial Workers.
• CPI – Agricultural Labourers (CPI -AL): This index measures the change in the price of commodity basket consumed by the agricultural labourers. It is this used to revise minimum wages for agricultural labour in different States.
• CPI – Rural Labourers: This index measures the change in the price of commodity basket consumed by the rural labourers.
• Theabove indices are published monthly by Labour Bureau under the Ministry of Labour and Employment for all India as well as States and Union Territories.
• Since the above three indices covered only a segment of the population and not the overall nation, we Designed three more indices of CPI.
• CPI – Rural: This index measures the change in the price of commodity basket consumed by the rural population
• CPI – Urban: This index measures the change in the price of commodity basket consumed by urban population
• CPI – Combined: It is computed by combining CPI Rural and CPI Urban Index The base year for the above three indices is 2011-12 and are published monthly by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation.