2. CPI-UNME

The Consumer Price Index for the Urban Non-Manual Employees (CPI- UNME) has 1984–85 (first base year was 1958–59) as the base year and 146– 365 commodities in the basket for which data is collected at 59 centres in the country—data collection frequency is monthly with two weeks time lag.44

This price index has limited use and it is basically used for determining dearness allowances (DAs) of employees of some foreign companies operating in India (i.e., airlines, communications, banking, insurance, embassies and other financial services). It is also used under the Income Tax Act to determine capital gains and by the CSO (Central Statistical Organisation) for deflating selected services sector’s contribution to the GDP at factor cost and current prices to calculate the corresponding figure at constant prices.

On the advice of its governing council the NSSO (National Sample Survey Organisation) is at present conducting a Family Living Survey (FLS) to obtain the profile of the present consumption pattern of urban non-manual employees so that the CPI (UNME) could be shifted to the present base year.

Presently, the CSO is also examining the possibility of constructing a consumer price index for the urban employees (a new index which might be like CPI–UE).