The Kerala Department of Economics & Statistics on October 21st 2024 published the CPI numbers for Agricultural Labourers and Industrial Workers for August 2024.
The Consumer Price Index (CPI) is a vital economic indicator that measures the average change over time in the prices paid by consumers for goods and services.
What is the Consumer Price Index?
The CPI is used to assess price changes associated with the cost of living. It reflects the price changes in a basket of goods and services, which typically includes food, clothing, rent, healthcare, and other essentials. In Kerala, the CPI plays a significant role in determining minimum wages and evaluating economic health.
Recent CPI Data for August 2024
The latest CPI report presents index numbers for various centers in Kerala, calculated using two bases: 2011-12 and 1998-99. This dual-base system allows for a more comprehensive analysis of price changes over different periods.
Highlights from the Report
Here are the key findings from the CPI data for August 2024:
| Centre | Linking Factor | Index (July 2024) | Index (August 2024) | Estimated Index (July 2024) | Estimated Index (August 2024) |
| Thiruvananthapuram | 2.11 | 208 | 207 | 439 | 437 |
| Kollam | 2.09 | 207 | 205 | 433 | 428 |
| Punalur | 2.10 | 203 | 201 | 426 | 422 |
| Pathanamthitta | 2.03 | 219 | 220 | 445 | 447 |
| Alappuzha | 2.05 | 210 | 208 | 431 | 426 |
| Kottayam | 2.08 | 215 | 215 | 447 | 447 |
| Mundakayam | 2.17 | 211 | 212 | 458 | 460 |
| Idukki | 1.97 | 212 | 210 | 418 | 414 |
| Ernakulam | 2.03 | 202 | 202 | 410 | 410 |
| Chalakkudy | 2.00 | 221 | 220 | 442 | 440 |
| Thrissur | 1.87 | 216 | 215 | 404 | 402 |
| Palakkad | 2.09 | 198 | 197 | 414 | 412 |
| Malappuram | 2.00 | 210 | 211 | 420 | 422 |
| Kozhikode | 2.02 | 217 | 215 | 438 | 434 |
| Wayanad | 1.93 | 209 | 208 | 403 | 401 |
| Kannur | 2.02 | 219 | 219 | 442 | 442 |
| Kasargod | 2.05 | 225 | 225 | 461 | 461 |
Analyzing the Data
- Variability Across Regions: The CPI figures reveal significant differences in the cost of living across various districts. For instance, while Thiruvananthapuram’s index decreased from 208 to 207, Pathanamthitta saw a slight increase from 219 to 220. Such fluctuations can inform wage adjustments and economic planning.
- Linking Factors: The linking factors, approved in a government order, are essential for adjusting the indices to maintain consistency over time. These factors help ensure that the CPI remains relevant despite changing economic conditions.
- Implications for Minimum Wages: The CPI directly affects the calculation of minimum wages under the Minimum Wages Act. Higher CPI values often lead to increased wage demands, which are crucial for improving the living standards of laborers.
