CONSUMER PRICE INDEX NUMBERS (for Industrial …

1 CONSUMER PRICE INDEX NUMBERS (for Industrial Workers) 2001 = 100 ANNUAL REPORT 2008 GOVERNMENT OF INDIA MINISTRY OF LABOUR & EMPLOYMENT LABOUR bureau SHIMLA/CHANDIGARH lR;eso t;rs PREFACE The CONSUMER PRICE INDEX NUMBERS for Industrial Workers are being compiled, maintained and disseminated by the Labour bureau since its inception in October, 1946. These INDEX NUMBERS , apart from being utilized for fixation and revision of wages, determination of variable Dearness Allowances, are also utilized as an indicator for measuring inflationary trend in the country and for policy formulations. These INDEX NUMBERS are compiled by the bureau on month to month basis and are disseminated through Press Release, Monthly INDEX Letters, Indian Labour Journal and Website ( ). However, despite regular dissemination of these INDEX NUMBERS through various forms of media, there has been a growing demand over the years from users for more detailed/serial data vis- -vis what is published through the ILJ and other publications of the bureau .

2 Labour bureau accordingly for the first time in 1997 brought out an Annual Report on CONSUMER PRICE INDEX NUMBERS for Industrial Workers containing details of All India and centre-wise indices for the year 1996, which was well appreciated by the users. I take this opportunity to express my gratitude to all the selected shopkeepers of the selected markets in 78 selected centres who have been furnishing the PRICE data on voluntary basis. I also wish to put on record my appreciation for work done by the PRICE Collectors and the PRICE Supervisors in collection of PRICE data and timely dispatch of PRICE returns to the bureau . The role of bureau s regional offices also deserve a special mention for their relentless efforts in supervising the PRICE collection machinery and in cleaning the PRICE data.

3 The present report, 13th in the series, is an outcome of the efforts made by the CPI Division of Labour bureau . The officers and members of the staff associated with the preparation of this report, whose names are given in the Annexure-II, deserve my appreciation. Suggestions for improvement will be appreciated. Shimla: 171004 20th NOVEMBER, 2009 DR. K S R V S CHALAM DIRECTOR GENERAL CONTENTS Page Summary of Annual Report 2008 i Methodology for compilation of CONSUMER PRICE INDEX NUMBERS for Industrial Workers (base 2001=100) ii-vi Table 1 : Calendar year average All-India CONSUMER PRICE INDEX NUMBERS for Industrial Workers on base 1982=100 & base 2001=100 for the period 1991 to 2008 (General & Group-wise). 1 Table 2 : Financial year average All-India Average CONSUMER PRICE INDEX NUMBERS for Industrial Workers on base 1982=100 & base 2001=100 for the period 1996-97 to 2008-09 (General & Group-wise).

4 2 Table 3 : Centre-wise and All-India CONSUMER PRICE INDEX NUMBERS (General) for Industrial Workers on base 1982=100 and 2001=100 for the period 1998 to 2008 (Calendar Year Averages) including centre-weights in All-India. 3 6 Table 4 : Monthly All-India CONSUMER PRICE INDEX NUMBERS for Industrial Workers on base 1982=100 for the period January, 1998 to December, 2005 and on base 2001=100 for the period January,2006 to December, 2008 (General & Food INDEX ). 7 8 Table 5 : All-India Average CONSUMER PRICE INDEX NUMBERS for Industrial Workers by Groups/Sub-Groups on base 1982=100 for the period 1999 to 2005 and on base 2001=100 for the period 2006 and 2008 (Calendar Year & Financial Y ear Averages) 9 10 Table 6 : Centre-wise and All-India Monthly CONSUMER PRICE INDEX NUMBERS for Industrial Workers on base 2001=100 (General) for the year 2008.

5 11 14 Table 7 : All-India Monthly CONSUMER PRICE INDEX NUMBERS for Industrial Workers on base 2001=100 by Groups/Sub-groups for the year 2008. 15 Tables to : Centre-wise Monthly and Annual Average CONSUMER PRICE INDEX NUMBERS for Industrial Workers on base 2001=100 by Groups/Sub-Groups for the year 2008. 16 93 (i) Page Table to : All-India Group-wise and Centre-wise Linking Factors between current series of CONSUMER PRICE INDEX NUMBERS for Industrial Workers on base 2001=100 and previous series on base 1982=100 94 96 Table 10 : All-India Item-wise weights for previous series of CONSUMER PRICE INDEX NUMBERS for Industrial Workers on base 1982=100 and those for the current series on Base 2001=100. 97 -106 GRAPH : A Line Graph showing Point to Point rate of Inflation for CONSUMER PRICE INDEX NUMBERS for Industrial Workers on base 2001=100 for the year 2008 (General) 107 ANNEXURE - I : List of Annual Reports on CONSUMER PRICE INDEX NUMBERS for Industrial Workers brought out so far by Labour bureau .

6 (i) ANNEXURE - II : Team of Officers/Officials associated with this Publication. (ii) (ii) CONSUMER PRICE INDEX NUMBERS FOR Industrial WORKERS (BASE: 2001=100) ANNUAL REPORT 2008 (Summary) CONSUMER PRICE INDEX NUMBERS for Industrial Workers on Base: 2001=100, which measure a change over time in prices of a fixed basket of goods and services consumed by Industrial Workers, are compiled and maintained by the Labour bureau since its release on 9th March, 2006 with January, 2006 INDEX . These INDEX NUMBERS are compiled for Industrial Workers residing in 78 industrially important centres of the country. These centres were selected on the basis of their Industrial employment. The indices for all the 78 centres are compiled in several stages , Sub-group, Group and General level and are released on last working day of every succeeding month.

7 The weights utilized in the compilation of current series of INDEX NUMBERS were derived from the Working Class Family Income and Expenditure Survey conducted during 1999-2000. A monthly all-India INDEX , which is a weighted average of 78 centre indices, was also worked out and released every month from January, 2006 and onwards. The report, besides presenting the serial data on INDEX NUMBERS in respect of 78 centres and all -India, also presents other related information viz., Linking Factors, Centre-wise Group/Sub-Group weights and all-India items-wise weights for previous as well as the existing series. The analysis of the movement of all-India INDEX NUMBERS for the year 2008 revealed a fluctuating trend. During 2008, it gradually increased from 134 points in January, 2008 to the level of 148 points in October, 2008.

8 In November, 2008 it remained static at 148 points. Thereafter, it decreased by one point in December, 2008 and settled at 147 points. The graph depicting the point to point rate of inflation during 2008 based on CPI(IW) on base 2001=100 also showed a fluctuating trend. During January, 2008 the point to point rate of inflation was which decreased to in February, 2008. However, it increased to in March, 2008 and started declining from April, 2008 to reach the level of in June, 2008. Thereafter, it started increasing and reached the level of in October, 2008 and remained stationary in November, 2008. The inflation rate, however, dipped to the level of in December, 2008. i METHODOLOGY FOR COMPILATION OF CONSUMER PRICE INDEX NUMBERS FOR Industrial WORKERS ( BASE : 2001=100 ) INTRODUCTION The history of compilation & maintenance of CONSUMER PRICE INDEX NUMBERS for Industrial Workers owes its origin to the deteriorating economic condition of the workers on account of abnormal rise in prices following the First World War.

9 As a result of sharp rise in prices and the cost of living, some Provincial Governments started conducting Family Budget Enquiries and compilation of CONSUMER PRICE INDEX NUMBERS for Industrial Workers in the country. But none of them was entirely satisfactory. In pursuance of the recommendations made by the Rau Court of Enquiry, the job of compilation & maintenance of CONSUMER PRICE INDEX NUMBERS for Industrial Workers was taken over by the Central Govt. in 1941. However, the compilation of INDEX NUMBERS on uniform and scientific lines was started only after the conduct of the Family Living Surveys by the Labour bureau during 1958-59 at 50 important Industrial centres, spread over length and breadth of the country, under the guidance of the Technical Advisory Committee on Cost of Living INDEX NUMBERS and compilation of CONSUMER PRICE INDEX NUMBERS for Industrial Workers on base 1960=100.

10 Since then the compilation and maintenance of CONSUMER PRICE INDEX NUMBERS are being done by the Labour bureau on a continuous basis. The series (1982=100) had replaced the old (1960=100) series in December, 1988 with the release of October, 1988 INDEX . The new series on base 2001=100 has been released on 9th March, 2006 with January, 2006 INDEX which has replaced the earlier (1982=100) series. Labour bureau , is the competent authority under the Minimum Wages Act, 1948 to ascertain, from time to time, the CONSUMER PRICE INDEX NUMBERS applicable to employees employed in the Scheduled employments in respect of all the undertakings in the Central Sphere and the Union Territories (Notification No. LWI-24(3) dated 24th October, 1949). With a view to improving the quality and uniformity of the labour statistics collected by various States and Central authorities, the bureau maintains liaison with the concerned agencies.