90% DA from July, 2013 may be announced in view of May, 2013 AICPIN

According to the press release, the All-India CPI-IW for May, 2013 rose by 2 points and pegged at 228 two hundred and twenty eight) and expected Dearness Allowance due from July, 2013 is unchanged in respect of previous month expectation of 90% means 10% increase in present DA.  Now picture of expected DA, which is based on a standard calculation is confirmed now. An impossible increase of 9 points in AICPIN of June, 2013 will change the expectation from 90% to 91%.  See following table:-

Expect-ation	Increase/ Decrease Index	Month	Base Year 2001 = 100	Total of 12 Months	Twelve monthly Average	% increase over 115.76 for   DA	DA announced or will be announced
	1	Nov-12	218	2490	207.50	79.25%	80%
	1	Dec-12	219	2512	209.33	80.83%
	2	Jan-13	221	2535	211.25	82.49%	82%
	2	Feb-13	223	2559	213.25	84.22%	84%
	1	Mar-13	224	2582	215.17	85.87%	85%
	2	Apr-13	226	2603	216.92	87.38%	87%
	2	May-13	228	2625	218.75	88.97%	88%
1st Expectation	0	Jun-13	228	2645	220.42	90.41%	90%
		Jul-13	Expected DA from July-2013				90%
2nd Last Expectation	8	Jun-13	236	2653	221.08	90.98%	90%
		Jul-13	Expected DA from July-2013				90%
Last Expectation	9	Jun-13	237	2654	221.17	91.06%	91%
		Jul-13	Expected DA from July-2013				91%

Therefore DA from July, 2013 will be 90% and will be announced in September or October in this year.

PIB Release of CPI-IW:

Press Information Bureau

Government of India

Ministry of Labour & Employment

28-June-2013 17:45 IST

Consumer Price Index for Industrial Workers (CPI-IW)-May, 2013

The All-India CPI-IW for May, 2013 rose by 2 points and pegged at 228 (two hundred and twenty eight). On 1-month percentage change, it increased by 0.88 per cent between April and May compared with 0.49 per cent between the same two months a year ago.

The largest upward contribution to the change in current index came from Food group which increased by 1.22 per cent, contributing 1.64 percentage points to the total change. At item level, Rice, Arhar Dal, Fish Fresh, Poultry (Chicken), Milk, Chillies Green, Garlic, Ginger, Tomato, Root & Green Vegetables, Tea Leaf, Tea (Readymade), Cigarette, Country Liquor, Electricity Charges, Medicine (Allopathic), Repair Charges, etc. are responsible for the rise in index. However, this was compensated by Petrol putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 10.68 per cent for May, 2013 as compared to 10.24 per cent for the previous month and 10.16 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 13.24 per cent against 12.39 per cent of the previous month and 10.61 per cent during the corresponding month of the previous year.

At centre level, Chennai and Nagpur recorded the largest increase of 8 points each followed by Nasik (7 points) and Warrangal, Coonoor, Hubli Dharwar, Madurai and Tripura (6 points each). Among others, 5 points rise was registered in 2 centres, 4 points in 14 centres, 3 points in 6 centres, 2 points in 12 centres, and 1 point in 12 centres. On the contrary, a decline of 6 points was reported in Delhi, 5 points in Ghaziabad, 4 points in Srinagar, 3 points in 2 centres, 2 points in 2 centres and 1 point in 7 centres. Rest of the 10 centres’ indices remained stationary.

The indices of 38 centres are above All-India Index and other 38 centres’ indices are below national average. The index of Jabalpur and Haldia centres remained at par with all-India index.

The next index of CPI-IW for the month of June, 2013 will be released on Wednesday, 31 July, 2013. The same will also be available on the office website www.labourbureau.gov.in.

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