Retail inflation for industrial workers eases to 5.06% in June

Retail inflation for industrial workers eased to 5.06 percent in June this year from 8.59 percent in the same month of 2019, mainly due to lower prices of certain food items and kerosene oil.

It was recorded at 5.10 percent in May 2020," a labour ministry statement said.

Food inflation stood at 5.49 percent in June 2020 as against 5.88 percent in the previous month and 5.47 percent during the corresponding month a year ago.

Retail inflation for industrial workers measured in terms of Consumer Price Index for Industrial Workers (CPI-IW) for June 2020 increased by 2 points and stood at 332.

Labour Minister Santosh Gangwar said, "The All-India Index for June 2020 stood at 332 with a rise of two points compared to previous month. However, rate of annual inflation moderated to 5.06 percent from 5.10 percent in the previous month and 8.59 percent in the month a year before."

This index is utilised primarily for measuring Dearness Allowance (DA) payable to workers in the organised sector including PSUs, banks and insurance companies besides government employees, the minister added stressing upon the importance of the CPI-IW.

The maximum upward pressure in current index came from food group contributing (+) 1.65 percentage points to the total change.

At item level, rice, groundnut oil, fish fresh, goat meat, poultry (chicken), milk (buffalo), brinjal, cauliflower, green coriander leaves, potato, tomato, refined liquor, cooking gas, petrol, etc, are responsible for the increase in index.

However, this increase was checked by wheat atta, arhar dal, garlic, onion, arum, coconut, lady finger, lemon, mango, kerosene oil, etc, putting downward pressure on the index.

At centre level, Jharia recorded the maximum increase of 9 points. Among others, 8 points increase was observed in 3 centres, 7 points in 2 centres, 6 points in 3 centres, 5 points in 7 centres, 4 points in 12 centres, 3 points in 7 centres, 2 points in 10 centres and 1 point in 12 centres.

On the contrary, Ranchi-Hatia recorded a maximum decrease of 8 points. Among others, 3 points decrease was observed in 5 centres, 2 points in 2 centres and 1 point in 1 centre. Rest of 12 centres’ indices remained stationary.

The indices of 31 centres are above All-India Index and 45 centres’ indices are below national average. The indices of Chhindwara and Jalandhar centres remained at par with All-India Index.