Consumer price index – Industrial workers

In News: The All-India CPI-IW for December, 2022 decreased by 0.2 points and stood at 132.3 (one thirty two point three) points. On 1-month percentage change, it decreased by 0.15 per cent with respect to previous month compared to decrease of 0.24 per cent recorded between corresponding months a year ago.

• At centre level, Lucknow and Nasik recorded a maximum decrease of 1.9 points each.
• Faridabad recorded a maximum increase of 3.3 points followed by Nagpur and Tiruneveli with 3.0 and 2.4 points respectively.

CPI-IW

• The Labour Bureau, an attached office of the Ministry of Labour & Employment, has been compiling Consumer Price Index for Industrial Workers every month on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country.
• The index is compiled for 88 centres and All-India and is released on the last working day of succeeding month.
• Base year – 2016
• The maximum downward pressure in current index came from Food & Beverages group contributing 0.52 percentage points to the total change.
• Year-on-year inflation for the month stood at 5.50 per cent compared to 5.41 per cent for the previous month and 5.56 per cent during the corresponding month a year before.
• Similarly, Food inflation stood at 4.10 per cent against 4.30 per cent of the previous month and 5.93 per cent during the corresponding month a year ago.

Sources: PIB

Previous Year Question

Q1) Consider the following statements: (2020)

1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI).
2. The WPI does not capture changes in the prices of services, which CPI does.
3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.

Which of the statements given above is/are correct?

1. 1 and 2 only
2. 2 only
3. 3 only
4. 1, 2 and 3