Government revises base year of inflation index for working class

The government on Thursday revised the base year for the Consumer Price Index for Industrial Worker (CPI-IW), which is used to regulate the dearness allowance of government employees and the workers in the industrial sectors. It is also used in fixation and revision of minimum wages in scheduled employments besides measuring the inflation in retail prices.

Addressing the media at the launch of the new series of CPI-IW, Union labour minister Santosh Kumar Gangwar said that it will help in the measurements of macroeconomic indicators of the Indian economy. He added the improvements made in it, incorporating international standards and practices, will make it more comparable at the international level.

As per the recommendations of the International Labour Organisation (ILO), Index Review Committee (IRC) and National Statistical Commission (NSC), the base year of price index numbers should be revised at frequent intervals generally not exceeding 10 years to reflect the changes that take place in the consumption pattern of consumers.