High Sept CPI-inflation to put pressure on wage cost
Updated: Nov 01, 2013 04:37:14pm
New Delhi, Nov 1 (KNN) The Consumer Price Index for industrial workers (CPI-IW) increased by a hefty 10.70 per cent for September 2013 year on year (YOY), a development which is bound to exert pressure on wage inflation and add to the labour cost of industrial units.
“The year-on-year inflation measured by monthly CPI-IW stood at 10.70 per cent for September, 2013 as compared to 10.75 per cent for the previous month and 9.14 per cent during the corresponding month of the previous year,” said an official release.
Increase in CPI for industrial workers tends to increase wage pressure.
"In the last three years from 2010-11 onwards, the nominal rural wages have risen close to 20 per cent per annum exerting pressure on the prices of food articles," industry body ASSOCHAM said in a study recently.
Similarly, the food inflation stood at 13.36 per cent against 13.91 per cent of the previous month and 11.00 per cent during the corresponding month of the previous year.
“The largest upward pressure to the change in current index came from miscellaneous group contributing 0.44 percentage points to the total change,” the release said.
The Finance Minister P Chidambaram today sought to address concerns on inflation quoting, “I look forward to moderation in inflation.”
At item level, Arhar Dal, Goat Meat, Dairy Milk, Milk (Cow and Buffalo), Pure Ghee, Snack Saltish, Tea Leaves, Onion, Electricity Charges, Firewood, College Fee, Secondary School Fee, Petrol, Bus Fare, Tailoring Charges etc are responsible for the rise in index. However, this was compensated to some extent by Wheat, Groundnut Oil, Mustard Oil, Poultry, Ginger, Vegetables and Fruit items, putting downward pressure on the index.
CPI-IW for September rose by 1 point and pegged at 238. On 1-month percentage change, it increased by 0.42 per cent between August and September compared with 0.47 per cent between the same two months a year ago, the release said.
Unlike the Wholesale Price Index (WPI), the CPI inflation data represents changes in prices of all goods and services purchased for consumption by urban households. A CPI can be used to index (adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values. (KNN/SD)
“The year-on-year inflation measured by monthly CPI-IW stood at 10.70 per cent for September, 2013 as compared to 10.75 per cent for the previous month and 9.14 per cent during the corresponding month of the previous year,” said an official release.
Increase in CPI for industrial workers tends to increase wage pressure.
"In the last three years from 2010-11 onwards, the nominal rural wages have risen close to 20 per cent per annum exerting pressure on the prices of food articles," industry body ASSOCHAM said in a study recently.
Similarly, the food inflation stood at 13.36 per cent against 13.91 per cent of the previous month and 11.00 per cent during the corresponding month of the previous year.
“The largest upward pressure to the change in current index came from miscellaneous group contributing 0.44 percentage points to the total change,” the release said.
The Finance Minister P Chidambaram today sought to address concerns on inflation quoting, “I look forward to moderation in inflation.”
At item level, Arhar Dal, Goat Meat, Dairy Milk, Milk (Cow and Buffalo), Pure Ghee, Snack Saltish, Tea Leaves, Onion, Electricity Charges, Firewood, College Fee, Secondary School Fee, Petrol, Bus Fare, Tailoring Charges etc are responsible for the rise in index. However, this was compensated to some extent by Wheat, Groundnut Oil, Mustard Oil, Poultry, Ginger, Vegetables and Fruit items, putting downward pressure on the index.
CPI-IW for September rose by 1 point and pegged at 238. On 1-month percentage change, it increased by 0.42 per cent between August and September compared with 0.47 per cent between the same two months a year ago, the release said.
Unlike the Wholesale Price Index (WPI), the CPI inflation data represents changes in prices of all goods and services purchased for consumption by urban households. A CPI can be used to index (adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values. (KNN/SD)
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