Lok Sabha Question No. 2405 (UNSTARRED), answered on 2015-12-14
Subject: New Consumer Price Index
Ministry: LABOUR AND EMPLOYMENT
Asked by: PREM SINGH CHANDUMAJRA, SANGANNA AMARAPPA KARADI

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA UNSTARRED QUESTION NO. 2405 TO BE ANSWERED ON 14.12.2015

## NEW CONSUMER PRICE INDEX

†2405. SHRI PREM SINGH CHANDUMAJRA: SHRI SANGANNA AMARAPPA:

Will  the  Minister  of  LABOUR  AND  EMPLOYMENT  be  pleased  to state:

- (a)whether constant increase in the Consumer Price Index (CPI) level is being registered during the last few months of the year 2015-16;
- (b)if so, the details in this regard along with the reasons therefor;
- (c)whether the Government is considering to prepare new CPI to made certain reforms in the old system for measuring the price index;
- (d)if  so,  the  details  thereof  along  with  the  extent  of  representation each factor would be given in the new CPI and the basis thereto; and
- (e)the additional benefit likely to be accrued or a result thereof?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI BANDARU DATTATREYA)

- (a) & (b): Yes, Madam. Details are at Annexure. The increase in the Consumer Price Index (CPI) level is due to increase in the prices of commodities of the consumption basket, specially food items.
- (c) & (d): Yes, Madam.  Labour Bureau initiated an exercise in September, 2013 to update the base of the Consumer Price Index for Industrial Workers (CPI-IW) from the existing base 2001=100 to a more recent period.

Contd..2/-

The  target  population  for  the  existing  CPI  (IW)  series  is working class families of industrial workers engaged in seven sectors, namely Factories, Mines, Plantations, Railways, Public Motor Transport Undertakings, Electricity Generating & Distributing Establishments and Ports & Docks. Coverage of New CPI-IW series is retained  at  these  seven  sectors.  Two  additional  sectors  namely Handloom  and  Construction  are  being  covered  only  on  experimental basis and will not form part of the main index series.

The  employment  of  industrial  workers      registered  an increase  of  15%  since  the  last  survey  of  1999-2000  in  which  78 centres  located  in  24  states/UTs  were  covered.  Considering  this, coverage  of  centres  in  the  New  Series  has  been  increased  to  88

centres which are located in 28 states/UTs.

Coverage in terms of markets has been increased from the 289 markets in the ongoing series to 317 markets in the new series.

(e): The activity will result in compilation of more representative, relevant and reliable series of Consumer Price Index Numbers, inter-alia, by capturing latest consumption pattern of the target group i.e., Industrial Workers.

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Annexure Annexure referred to in reply to Lok Sabha Unstarred Question no. 2405 for answer on 14/12/2015. The All-India CPI-IW for the period April, 2015 to October, 2015 along with month-wise percentage change is given in the statement below:

| Month           |   CPI-IW (base 2001=100) |   Percentage increase over previous month |
|-----------------|--------------------------|-------------------------------------------|
| April, 2015     |                      256 |                                      0.79 |
| May, 2015       |                      258 |                                      0.78 |
| June, 2015      |                      261 |                                      1.16 |
| July,2015       |                      263 |                                      0.77 |
| August, 2015    |                      264 |                                      0.38 |
| September, 2015 |                      266 |                                      0.76 |
| October, 2015   |                      269 |                                      1.13 |

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