Likewise the consumer price index is determined by increase in the prices of basket of identified essential commodities. The increase of CPI number is not good any way for either the government employees or common people. Whatever the money the central government employees are supposed to get from the dearness allowance hike will be swallowed by the essential commodities for which they have to spend every month, since the prices of all the essential commodities are increasing at the alarming rate.
|Month||Jul 2012||Aug 2012||Sep 2012||Oct 2012||Nov 2012||Dec 2012||Jan 2013||Feb 2013||Mar 2013||Apr 2013||May 2013||Jun 2013|
The formula for calculating dearness allowance is:( Avg of AICPI for the past 12 months – 115.76)*100/115.76
If we apply this in the formula given above the answer is = 90.120