Which of the following brings out the "Consumer Price Index Number for Industrial Workers"?
Contents14
- AThe Reserve Bank of India
- BThe Department of Economic Affairs.
- CThe Labour Bureau
- DThe Department of Personnel and Training
Show answer
Answer: (C) The Labour Bureau
The Consumer Price Index for Industrial Workers (CPI-IW) is compiled and released by the Labour Bureau, which is under the Ministry of Labour and Employment.
This index is very important because it is used to calculate Dearness Allowance (DA) for government employees and to revise minimum wages under the Minimum Wages Act.
To remember which body releases which CPI:
- CPI-IW (Industrial Workers) = Labour Bureau.
- CPI (Urban), CPI (Rural), CPI (Combined) = Central Statistics Office (CSO) under the Ministry of Statistics and Programme Implementation.
- WPI (Wholesale Price Index) = Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT).
RBI does not compile any price index — it uses these indices (especially CPI-Combined) for monetary policy decisions like setting interest rates.
Department of Economic Affairs handles budget and economic policy.
DoPT handles civil services and personnel matters.
Neither is involved in CPI compilation.
CPI-IW is used to calculate Dearness Allowance for government employees and to revise minimum wages, making it crucial for crores of workers.
Students often confuse which agency publishes which price index - Labour Bureau does CPI-IW, CSO does other CPIs, and RBI only uses these indices for policy decisions without compiling any.
Consumer Price Index Types
Indian Economy Consumer Price Index Number Industrial Workers
Consumer Price Index Types & Publishing Bodies
CPI-IW is published by Labour Bureau under Ministry of Labour & Employment
CPI (Urban/Rural/Combined) is published by Central Statistics Office (CSO)
CPI-IW is used to calculate Dearness Allowance for government employees
RBI uses CPI-Combined for monetary policy decisions, but doesn't compile any CPI
What is CPI
Consumer Price Index measures the average change in prices of goods and services consumed by households. India has different CPI series for different population groups, each compiled by different government bodies.
CPI Types & Publishing Bodies
CPI Type | Publishing Body | Ministry | Target Group |
|---|---|---|---|
CPI-IW (Industrial Workers) | Labour Bureau | Labour & Employment | Industrial workers in factories |
CPI (Urban) | CSO | Statistics & PI | Urban households |
CPI (Rural) | CSO | Statistics & PI | Rural households |
CPI (Combined) | CSO | Statistics & PI | All India - urban + rural |
Key Uses of CPI-IW
Calculation of Dearness Allowance (DA) for central government employees
Revision of minimum wages under the Minimum Wages Act
Wage negotiations in organized industrial sector
Cost of living adjustments for workers
Question Context
This question tested knowledge of which specific government body compiles CPI-IW. The trap was confusing RBI's role - while RBI uses CPI data for policy, it doesn't compile any price indices.
RBI doesn't compile any CPI - it only uses CPI-Combined for monetary policy decisions
Labour Bureau publishes CPI-IW only - not the other CPI variants
CSO publishes CPI (Urban/Rural/Combined) - not CPI-IW
Don't confuse Department of Economic Affairs (budget policy) with price index compilation
Wholesale Price Index
Indian Economy
Wholesale Price Index: Publisher & Key Features
WPI is published by Office of Economic Adviser, DPIIT
WPI measures wholesale/producer prices, not retail consumer prices
WPI was India's primary inflation indicator before 2014, now CPI-Combined is preferred
What is WPI
Wholesale Price Index measures the average change in prices of goods sold in bulk at wholesale level, before they reach retail consumers. It reflects producer price inflation rather than consumer price inflation.
CPI vs WPI Comparison
Aspect | CPI | WPI |
|---|---|---|
Price Level | Retail/Consumer prices | Wholesale/Producer prices |
Services Coverage | Includes services | No services - only goods |
Weight of Food | Around 46% | Around 24% |
Monetary Policy | RBI uses CPI-Combined | Secondary reference |
Publisher | CSO (except CPI-IW) | Office of Economic Adviser, DPIIT |
WPI excludes services - only covers goods like food, fuel, manufactured items
DPIIT publishes WPI - not RBI, CSO, or Labour Bureau
CPI-Combined is now preferred for monetary policy over WPI
RBI Economic Functions
Indian Economy Reserve Bank of India
RBI's Role in Price Indices & Monetary Policy
RBI uses CPI-Combined as primary inflation target for monetary policy
RBI doesn't compile any price indices - it uses data from other agencies
India follows flexible inflation targeting with 4% CPI inflation target
RBI and Price Indices
RBI is a user, not compiler of price indices. It uses CPI-Combined data from CSO to make monetary policy decisions like setting repo rates, but doesn't publish any CPI or WPI series itself.
RBI's Inflation-Related Functions
Sets repo rate and reverse repo rate based on CPI inflation trends
Follows flexible inflation targeting framework since 2016
Maintains inflation target of 4% ± 2% using CPI-Combined
Publishes Monetary Policy Committee (MPC) decisions on interest rates
Issues periodic assessments of inflation outlook in policy statements
RBI doesn't publish CPI-IW, CPI, or WPI - common wrong option in UPSC questions
RBI uses price indices but doesn't compile them - key distinction
Flexible inflation targeting uses CPI-Combined, not WPI as primary measure
Government Economic Departments
Indian Polity Department of Economic Affairs Department of Personnel and Training
Key Economic Departments & Their Functions
Department of Economic Affairs handles budget, fiscal policy, and capital markets
Department of Personnel & Training manages civil services and government employees
Neither department compiles price indices - that's done by statistical agencies
Key Economic Departments
Department | Ministry | Key Functions | Price Index Role |
|---|---|---|---|
Dept of Economic Affairs | Finance | Budget, fiscal policy, capital markets | None - policy user only |
Dept of Personnel & Training | Personnel | Civil services, employee policy | None - not economic statistics |
Labour Bureau | Labour & Employment | Labour statistics, wages | Publishes CPI-IW |
Central Statistics Office | Statistics & PI | Economic statistics | Publishes CPI variants |
Department of Economic Affairs
Prepares Union Budget and monitors fiscal policy implementation
Regulates capital markets through SEBI oversight
Manages government borrowing and public debt
Handles banking policy and financial sector reforms
Coordinates with international financial institutions like IMF, World Bank
DEA makes economic policy but doesn't compile statistical data like CPI
DoPT handles personnel matters - has no role in economic statistics
Statistical compilation is done by specialized agencies like Labour Bureau, CSO