Retail inflation for industrial workers eased to 3.67 per cent in December 2020 against 9.63 per cent in the same month of last year due to lower prices of certain food items. Retail inflation measured in terms of all-India Consumer Price Index for Industrial Workers (CPI-IW) was 5.27 per cent in November 2020, a labour ministry statement said.
Food inflation for industrial workers stood at 2.89 per cent against 7.48 per cent in the previous month and 12.22 per cent during the corresponding month a year ago.
All-India CPI-IW for December decreased by 1.1 points and stood at 118.8.
On one-month percentage change, it decreased by (-) 0.92 per cent between November and December, 2020 compared to (+) 0.61 per cent increase between corresponding months of the previous year.
The maximum downward pressure in current index came from Food & Beverages group contributing (-) 1.53 percentage points to the total change.
At centre level, Ramgarh recorded the maximum decrease of 6 points. Among others, a 4 points decrease was observed in three centres, 3 points in seven centres, 2 points in 29 centres and 1 point in 24 centres.
On the contrary, Solapur recorded a maximum increase of 2 points. Among others, 1 point rise was observed in five centres. Rest of 18 centres’ indices remained stationary.
The CPI-IW is the single-most important price statistics which has financial implications.
Labour Minister Santosh Gangwar said, "The fall in inflation during December month is mainly due to food items which experienced a significant fall in retail prices on account of rise in supply. Fall in inflation would imply increased purchasing power in the hands of working class families."
Director General, Labour Bureau, D P S Negi said, "The fall in index during December 2020 and fall in inflation rate are in line with other price indices compiled and released by other government agencies."
He explained that the fall in index is mainly due to Food & Beverages group contributing (-) 1.53 percentage points to the total change. Among items, rice, poultry (chicken), orange, brinjal, cabbage, cauliflower, carrot, chillies green, ginger, onion, peas, potato, tomato, etc. are responsible for the decline in index.
The CPI-IW is primarily used to regulate the dearness allowance of government employees and workers in industrial sectors. It is also used in fixation and revision of minimum wages in scheduled employments besides measuring the inflation in retail prices.