The Labour Bureau has put out the monthly reading for the All India Consumer Price Index (Industrial Worker) (AICPI-IW) for May, 2026, at 150.8. This index is crucial for calculating the dearness allowance (DA) for central government employees and is the highest it has been in the last 12 months, accordig to Labour Bureau data. However, the DA hike for June 2026 will be known only after the Labour Bureau releases the June AICPI reading at the end of July.
Following a 2% increase in January 2026, the DA for central government employees stands at 60%. The May reading shows that the DA hike is likely to be 3%. But can it reach 4% after the June inflation data is released? Let’s find out.