UPSC Prelims 2015 · Question 29 of 98

UPSC Prelims 2015 question on CPI Industrial Workers

Which of the following brings out the 'Consumer Price Index Number for Industrial Workers'?

  1. The Reserve Bank of India
  2. The Department of Economic Affairs
  3. The Labour Bureau
  4. The Department of Personnel and Training
Show answer

Answer: C. The Labour Bureau

Verdict

The answer is the Labour Bureau. The Consumer Price Index for Industrial Workers is compiled and released by the Labour Bureau.

Analysis

The Labour Bureau, under the Ministry of Labour and Employment, compiles the CPI for Industrial Workers, for Agricultural Labourers and for Rural Labourers, and the CPI (IW) is the index used to fix dearness allowance and to inform minimum wage revisions. The Reserve Bank uses inflation data but does not compile the index. The Department of Economic Affairs frames macroeconomic policy rather than statistics. The Department of Personnel and Training handles service matters and has no statistical mandate.

Source

Reporting on minimum wage amendments and wage rate policy.

How to crack it

For every price index, hold the compiler and the user separately, since UPSC likes to swap them. The Labour Bureau compiles CPI (IW), the National Statistical Office compiles the combined CPI, and the Office of the Economic Adviser compiles the Wholesale Price Index. Then reason from the constituency: an index built for industrial workers naturally belongs to the labour machinery, which points to the Labour Bureau without any recall at all.

More questions on Inflation

All 10 questions on Inflation →

← Full 2015 question paper · All Indian Economy questions