1. CPI-IW

The Consumer Price Index for the industrial workers (CPI-IW) has 260 items (plus the services) in its basket with 2001 as the base year43 (the first base year was 1958–59). The data is collected at 76 centres with one month’s frequency and the index has a time lag of one month.

Basically, this index specifies the government employees (other than banks’ and embassies’ personnel). The wages/salaries of the central government employees are revised on the basis of the changes occurring in

this index, the dearness allowance (DA) is announced twice a year. When the Pay Commission recommends pay revisions, the base is the CPI (IW).