The consumer price index (CPI) inflation for industrial workers eased to 6.19 percent y-o-y in the month of June as compared to 7.2 percent in May on account of softening of prices of foods items. Inflation in food articles for industrial workers dropped to 5.88 percent in June 2014 from 7.66 percent in May and 14.86 percent during the same month of previous year.
Among the food products, price rise was seen in rice, fish, vegetables, sugar, cigarette, goat meat, poultry, chicken, milk, onion, potato, tomato, electricity, bus fares and soap. However, the increase was restricted due to lower prices of wheat, wheat flour, edible oils, fruits and medicines.
The Consumer Price Index- number for Industrial Workers (CPI-IW) increased by two points from 244 to 246 during the month of June 2014. Further, 12 monthly moving average increased to 240, entitling the Government employees to additional seven percent dearness allowance (DA) from July 1, 2014. Dearness Allowance (DA) is an allowance paid to employees to compensate them for erosion of real income / wage due to inflation, which they were getting on a particular bench-mark date. Owing to the increase in moving average from 222.58 to 240 during January 2014 and June 2014 , the DA for employees would increase from 100 percent to 107 percent.