All India Consumer Price Index (IW) – Mar 2020

 

All India Consumer Price Index (IW) – Mar 2020

All India Consumer Price Index for Industrial Workers for March 2020

	Base Year	Feb-20	Mar-20
Consumer Price Index Numbers for Industrial Workers - CPI(IW)	1960 = 100	7486	7441
	2001 = 100	328	326

 

All India Consumer Price Index for Industrial Workers has been decreased by 2 points in March 2020 to 326 from 328 in February 2020

·         Consumer Price Indices (CPI) measure changes over time in general level of prices of goods and services that households acquire for the purpose of consumption.

·         CPI numbers are widely used as a macroeconomic indicator of inflation, as a tool by governments and central banks for inflation targeting and for monitoring price stability.

·         CPI is also used for indexing dearness allowance to employees for increase in prices.

·         CPI is therefore considered as one of the most important economic indicators.

·         Released by Ministry of Statistics & Programme Implementation

·         The items covered in the basket are divided into three main categories for the purpose of price collection depending upon the frequency of price collection namely weekly, monthly and half-yearly :

i).            The prices of some items such as cereals, pulses, oils and fats, meat, fish, condiments, vegetable etc. which are sensitive and change frequently, are collected on weekly basis.

ii).           Prices of items like cinema, furniture, utensils, clothing, house-hold appliances etc. are collected on monthly basis as their prices do not change very frequently.

iii).          The prices of items like house rent, school/college fees and books are collected once in six months.

·         An All-India index isa weighted average of 70 centresindices. These 70 centres are allocated to different states on the basis of proportion of industrial worker employment in them. The weight assigned to each centre is the proportion of the estimated consumer expenditure of the centre to the aggregate consumer expenditure of all the centres