The Department of Labour of Rajasthan, recently issued a circular on 3rd March 2024, highlighting significant updates regarding the Consumer Price Index Series 2016-100 for industrial workers. This circular signifies a transition from the previous series based on 2001-100 to the new series, while also incorporating changes in the geographical centers for index calculations.
One of the notable alterations mentioned in the circular is the inclusion of Alwar center in the new series, replacing the Ajmer center. This adjustment aims to enhance the accuracy and relevance of the Consumer Price Index calculations, reflecting the evolving economic landscape in the region.
To ensure the comparability of the new base year 2016-100 with the earlier base year 1960-100, the labor bureaus meticulously analyzed and averaged the indices of all centers from both the old and new series over a 12-month period. Based on this analysis, a linking factor of 62.89 was established for Jaipur, Alwar, and Bhilwara centers, facilitating a seamless transition between the different base years.
The application of this linking factor becomes particularly significant when evaluating the Consumer Price Index for industrial workers in Jaipur, Alwar, and Bhilwara centers from July 2023 to December 2023. The data indicates a noteworthy trend, with the average index for the preceding 6 months (January 2023 to June 2023) standing at 8101, while the average for the subsequent 6 months (July 2023 to December 2023) decreased to 8080. This reduction of 21 points in the average Consumer Price Index signifies a shift in pricing dynamics impacting industrial workers in these regions.
