AICPIN for the month of May to be released today

AICPIN for the month of May to be released today

AICPIN(I-W) for the month of May 2014, the data on price rise and inflation, is going to be released today. The twice-a-year Dearness Allowance given to Central Government employees is calculated on the basis of Consumer Price Index for Industrial Workers based on 2001=100.

At the end of each month, the Labour Bureau, a Central Government agency, releases the AICPIN number for the previous month, based on the month’s price fluctuations. The Bureau is expected to release the APCIN number today. If one goes by the other statistics released for the month of May (Agricultural Labourers 771 to 777; Rural Labourers 773 to 780), the AICPIN number is expected to be on the ascent.

The hike in railway passenger and freight transportation fares is very likely to impact June’s AICPIN number. The AICPIN number for the month of May is expected to increase by a point or two.

Since the first Dearness Allowance of the year is based on the AICPIN points of from the months of December until June, the AICPIN points of May and June assume special significance. An increase of even one point in the next two months from the current levels will raise the additional Dearness Allowance by 7% in July. In other words, from 100%, the total Dearness Allowance could increase to 107..!

The Dearness Allowance given to Central Government employees is expected to rise to 107% in July.

Source: CGEN.in