India's main inflation measure, the Consumer Price Index (CPI), is set for another major update, even though it has been in its current form for only about 15 years.
However, the hike in salary for government officials may take some time as the Centre had earlier this year decided to put a freeze on any hike in the DA of its employees till July, 2021, owing to the Covid-19 pandemic.
The Seventh Pay Commission had decided to choose the CPI-IW as the index for adjusting inflation for central government employees.
The ministry of labour & employment on Friday announced a hike in variable dearness allowance for more than 1.5 crore workers in the central sphere by Rs 105 to Rs 210 per month. The hike, which will be effective from April 1, 2021, will also result in an increase in rate of minimum wages for central sphere employees and workers. It will be for scheduled employment in central sphere and applicable to the establishments under the authority of central government, Railway administration, mines, oil fields, major ports or any corporation established by the central government. These rates are equally applicable to contract and casual employees/workers.
A comprehensive technical framework needed, from which a more convincing policy could be demonstrated
Falling food prices notwithstanding, consumer inflation will remain high during the current fiscal because of high cost of housing and services as well as the increasing inflationary pressures from smaller cities, Goldman Sachs said in a report on Tuesday.
The Model Code of Conduct for the ongoing Lok Sabha elections has come in the way of release of routine economic data like the consumer price indices.
The Centre is likely to announce next month a hike in dearness allowance by 10 per cent to 100 per cent, benefiting about 50 lakh employees and 30 lakh pensioners.
Inflation targeting framework is now enshrined as a formal agreement by the government and the RBI; thus, it may seem that we are flogging a dead horse, says Soumya Kanti Ghosh.
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 and green vegetables, tea leaf, tea (readymade), cigarette, country liquor prices, electricity charges, medicine (allopathic), and repair charges, are responsible for the rise in index.
The statement said the food inflation stood at 7.56 per cent in February, 2014, against 8.94 per cent of the previous month and 14.98 per cent during the corresponding month of the previous year.
The increase in DA to 90 per cent would result in additional annual expenditure of Rs 10,879 crore.
At item level, rice, coconut oil, fish fresh, poultry, milk, onion, vegetables, fruits, sugar, cigarette, electricity charges etc. are responsible for increase in the index.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances