IDA likely to be 4% or above from 01 10 10

                       Central Govt. press release 31 08 10


All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of  July, 2010 increased by 4 points and stood at 178 (one hundred and seventy eight).

During July, 2010, the index recorded an increase of 11 points each in Bhavnagar and Giridih centres, 10 points each in Ranchi Hatia, Chandigarh and Amritsar centres, 9 points in 2 centres, 8 points in 2 centres, 7 points in 5 centres, 6 points in 9 centres, 5 points in 11 centres, 4 points in 11 centres, 3 points in 11 centres, 2 points in 5 centres and 1 point in 9 centres. The index decreased by 2 points each in Coimbatore and Warrangal centres and 1 point in Salem centre, while in the remaining 5 centres the index remained stationary.

The maximum increase of 11 points in Bhavnagar centre is mainly on account of Housing Index and increase in the prices of Groundnut Oil, Milk, Vegetable & Fruit items, etc. The increase of 11 points in Giridih centre is due to Housing Index and increase in the prices of Rice, Vegetable & Fruit items, Soft Coke, etc. The increase of 10 points each in Ranchi Hatia, Chandigarh and Amritsar centres is mainly on account of Housing Index and increase in the prices of Rice, Wheat Atta, Onion,  Vegetable & Fruit items, Kerosene Oil, Cooking Gas, etc. However, the decrease of 2 points in Coimbatore and Warrangal centres is due to decrease in the prices of Rice, Vegetable  items, etc. and the decrease of 1 point in Salem centre is due to decrease in the prices of Rice, Vegetable  items, etc.

The indices in respect of the six major centres are as follows:

1. Ahmedabad          175                  4. Delhi           164

2. Bangalore             183                  5. Kolkata      175

3. Chennai                162                  6. Mumbai      175

The point to point rate of inflation for the month of July, 2010 is 11.25% as compared to 13.73% in June, 2010.

Our comments: If there is no decrease in points, we may receive above 4% IDA. Eligible IDA percentage will be intimated early.