UPSC Prelims 2015 Q29: Indian Economy – Inflation & Price Indices
Which of the following brings out the ‘Consumer Price Index Number for Industrial
Workers’?
- (a) The Reserve Bank of India
- (b) The Department of Economic Affairs
- (c) The Labour Bureau
- (d) The Department of Personnel and Training
Answer: (c) The Labour Bureau
Explanation
Consumer Price Index Number for Industrial Workers (CPI-IW)
The CPI-IW is compiled by the Labour Bureau, an office of the Ministry of Labour and Employment, based in Shimla.
| Index | Compiled by | Main use |
|---|---|---|
| CPI for Industrial Workers | Labour Bureau | Dearness allowance of employees |
| CPI for Agricultural Labourers and Rural Labourers | Labour Bureau | Revising rural and MGNREGA wages |
| CPI (Rural, Urban, Combined) | National Statistical Office | RBI's inflation target |
| Wholesale Price Index | Office of the Economic Adviser, DPIIT | Wholesale inflation |
The options checked: the Reserve Bank of India uses CPI but does not compile it; the Department of Economic Affairs and the Department of Personnel and Training have no role.
Answer: (c) The Labour Bureau.
Why each option is right or wrong
- (a) Incorrect. The Reserve Bank of India uses price indices but does not bring out this one.
- (b) Incorrect. The Department of Economic Affairs does not compile price indices.
- (c) CORRECT. The Labour Bureau brings out the Consumer Price Index for Industrial Workers.
- (d) Incorrect. The Department of Personnel and Training only applies the dearness allowance.
Key point
CPI-IW, CPI-AL and CPI-RL: Labour Bureau (Shimla). CPI Combined: National Statistical Office. WPI: Office of the Economic Adviser.
Remember
CPI for Industrial Workers = Labour Bureau.
Common mistakes
- Giving all price indices to the RBI.
- Confusing CPI-IW (Labour Bureau) with CPI Combined (National Statistical Office).
- Forgetting that dearness allowance is linked to the CPI-IW.
Exam tip
Indices with 'workers' or 'labourers' in the name come from the Labour Bureau.
Sources
- Labour Bureau, Ministry of Labour and Employment — Consumer Price Index Numbers for Industrial Workers
- Ministry of Statistics and Programme Implementation — Consumer Price Index