DA hike: CPI-IW rises to 153.2; is 64% DA likely for central govt employees? Here’s what the calculation shows
Mint 57 min ago·1 Sept 2026, 8:36 am
The Consumer Price Index for Industrial Workers (CPI-IW) for July 2026 has increased by 1.3 points to 153.2. This rise in the consumer price index is a key factor in calculating Dearness Allowance (DA) for central government employees. The current data suggests that the running DA calculation for January 2027 could reach approximately 64%. This increase is significant as it directly impacts the disposable income of millions of government employees and their families.
For investors, this development is relevant as it signals a potential increase in consumer spending. Higher DA payouts typically boost the purchasing power of government employees, which can positively influence sectors like consumer goods, retail, and automobiles. The final DA rate will be confirmed after the government reviews CPI-IW data for the remaining months of 2026 and makes its official announcement.
Excerpt from Mint
July 2026 CPI-IW rose 1.3 points to 153.2, taking the running DA calculation for central government employees to about 64% for January 2027. The final DA rate will depend on CPI-IW data for August to December 2026 and the government's formal announcement. The All-India Consumer Price Index for Industrial Workers…Read the original at Mint
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