CPI-IW – Consumer Price Index for Industrial Workers Released by the Labour Bureau for April 2023
The Consumer Price Index (CPI) for Industrial Workers is a crucial economic indicator that reflects the changes in the cost of living for industrial workers in India. Recently, the CPI-IW – Consumer Price Index for Industrial Workers Released by the Labour Bureau, an attached office of the Ministry of Labour and Employment, showed the latest data for the month of April 2023 (provisional). This index provides valuable insights into inflationary trends and helps policymakers and stakeholders make informed decisions. In this article, we will delve into the key highlights of the consumer price index and its implications for industrial workers and the economy as a whole.
Consumer Price Index for Industrial Workers Released by the Labour Bureau for April 2023
I. Understanding the Consumer Price Index for Industrial Workers Released by the Labour Bureau
The Consumer Price Index for Industrial Workers is a measure of the average change over time in the prices of a fixed basket of goods and services consumed by industrial workers. It serves as a yardstick to gauge the impact of inflation on the purchasing power of industrial workers’ income. The index takes into account various essential commodities and services such as food, beverages, fuel, clothing, housing, medical care, education, and transportation.
II. April 2023 Consumer Price Index Data
The Labour Bureau, functioning under the M/o Labour & Employment, diligently compiles the Consumer Price Index for Industrial Workers each month. This comprehensive index is based on retail prices collected from 317 markets spanning across 88 industrially significant centers in the country. It covers both All-India and 88 specific centers, with the release date scheduled for the last working day of the following month. In this report, the index for the month of April 2023 is being unveiled.
For April 2023, the All-India CPI-IW witnessed a rise of 0.9 points, reaching a value of 134.2 (one hundred thirty-four point two). The one-month percentage change indicates an increase of 0.68 percent compared to the previous month, whereas it shows a growth of 1.35 percent compared to the same month of the previous year.
The primary contributor to the upward movement of the current index was the Food & Beverages group, accounting for 0.39 percentage points of the overall change. Notable items such as Rice, Arhar Dal, Apple, Banana, Orange, Cauliflower, Brinjal, Cabbage, Ginger, Peas, Dairy Milk, French bean, Lemon, Cumin seed/Jira, Chillies dry, Cooked Meal, Poultry Chicken, Ladies Suiting, and others played a significant role in driving the index upwards. However, this upward trend was moderated by items such as Wheat Atta, Tomato, Onion, Drum Stick, Lady’s Finger, Mango, Soyabean Oil, Sunflower Oil, Mustard Oil, Egg-Hen, Electricity Domestic, Firewood, and Chips, which exerted downward pressure on the index.
At the center level, Howrah recorded the highest increase of 4.1 points. Additionally, four centers experienced an increase ranging from 2 to 2.9 points, 30 centers witnessed an increase between 1 to 1.9 points, and 37 centers observed an increase between 0.1 to 0.9 points. Conversely, Salem recorded a maximum decrease of 1.9 points, while 11 other centers saw a decrease ranging from 0.1 to 0.9 points. The remaining four centers’ indices remained unchanged.
The year-on-year inflation rate for the month stood at 5.09 percent, compared to 5.79 percent in the previous month and 6.33 percent during the corresponding month of the previous year. Similarly, food inflation was recorded at 4.16 percent, compared to 5.02 percent in the previous month and 7.05 percent during the corresponding month of the previous year.
III. Impact on Industrial Workers
The increase in the Consumer Price Index for Industrial Workers has a direct impact on the living standards of industrial workers. As the cost of essential commodities and services rises, it becomes increasingly challenging for workers to maintain their standard of living with the same income. With food and fuel being significant components of their expenditure, any spike in prices can burden industrial workers’ budgets.
IV. Inflationary Trends and Policy Implications
The CPI for Industrial Workers serves as a crucial indicator of inflationary trends in the country. Rising inflation can have several implications for the economy and policymakers. It can erode the purchasing power of consumers, reduce savings, and increase the cost of borrowing. In response to inflationary pressures, policymakers April implement measures such as adjusting interest rates, fiscal policies, or introducing price control mechanisms to stabilize prices and mitigate the impact on consumers.
V. Regional Variations in Consumer Price Index
The consumer price index for industrial workers released by the Labour Bureau provides insights into regional variations in inflation. Different regions of the country April experience different inflation rates due to factors like availability of essential commodities, transportation costs, and local market dynamics. The CPI data helps policymakers identify specific regions where inflation is particularly high and take targeted measures to address the issue.
VI. Role of Consumer Price Index in Wage Determination
The Consumer Price Index for Industrial Workers plays a significant role in wage determination for industrial workers. Many collective bargaining agreements and wage revisions are linked to changes in the CPI. When the CPI rises, it often leads to demands for higher wages to offset the increased cost of living. Therefore, the index acts as a benchmark for negotiating fair wages and ensuring that workers’ incomes keep pace with inflation.
In conclusion, the Consumer Price Index for Industrial Workers released by the Labour Bureau plays a vital role in understanding inflationary trends and their impact on the cost of living for industrial workers in India. The latest data for April 2023 reflects a moderate increase in the index, primarily driven by rising food and fuel prices. This increase poses challenges for industrial workers and calls for appropriate policy measures to mitigate its effects. By monitoring the CPI data, policymakers and stakeholders can make informed decisions regarding wage revisions, inflation management, and other interventions to ensure the well-being of industrial workers and maintain economic stability.