Consumer Price Index for Industrial Workers CPI(IW)
This index is the oldest among the CPI indices as its dissemination started as early as in 1946. The history of compilation and maintenance of Consumer Price Index for Industrial workers owes its origin to the deteriorating economic condition of the workers post first world war which resulted in sharp increase in prices. As a consequence of rise in prices and cost of living, the provincial governments started compiling Consumer Price Index. The estimates were however not satisfactory. In pursuance of the recommendation of Rau Court of enquiry, the work of compilation and maintenance was taken over by government in 1943. Since 1958-59, the compilation of CPI(IW) has been started by Labour Bureau ,an attached office under Ministry of Labour & Employment.
Consumer Price Index Numbers for Industrial workers measure a change over time in prices of a fixed basket of goods and services consumed by Industrial Workers. The target group is an average working class family belonging to any of the seven sectors of the economy- factories, mines, plantation, motor transport, port, railways and electricity generation and distribution . CPI (IW) is currently calculated at base 2001=100 for 78 centres and prices are collected from 289 markets across these 78 centres. The previous base periods of the index have been 1944,1949,1960 and 1982=100. The 2001 index is a more representative index than 1982 series CPI(IW) as its coverage of centres, markets and sample size for coverage of working class family income & expenditure survey is much more wider.. The index has a time lag of one month and is released on the last working day of the month. It is used for wage indexation and fixation of dearness allowance for government employees.