Dearness Allowance: AICPI-IW rises to 143, why it matters for DA hike of Central Govt employees

The Labour Bureau under the Ministry of Labour and Employment compiles the consumer price index for industrial workers every month based on retail prices collected from 317 markets spread over 88 industrially important centres across the country.

"The All-India CPI-IW for March 2025 increased by 0.2 point and stood at 143.0 (one hundred forty-three)," the Labour Bureau said in a press release dated April 30, 2025.

It further said that the year-on-year inflation for March 2025 stood at 2.95% as compared to 4.20% in March 2024. Compared to February 2025, there has been an increase in inflation from 2.59% to 2.95% in March.

Data shows that the food and beverage prices have been under control over the past three months.

The index for food and beverages declined by o.6 points from 146.8 in February 2025 to 146.2 in March 2025. Hence, the increase in AICPI-IW is very small, even as the indices for various other items increased slightly in March.

Why does this matter for Central Government employees?

In February, the AICPI-IW data had declined by 0.4 points, dashing hopes of a higher dearness allowance hike in July. In March, there isn't any significant increase in AICPI-IW.

While it's good that the inflation numbers are under check, employees waiting for a higher DA hike may be disappointed if the current trend of low inflation continues.