Dearness Allowance: AICPI-IW jumps 1.3 points in July; what does it mean for employees' DA hike?

All India Consumer Price Index for Industrial Workers (AICPI-IW) jumped 1.3% to 153.2 points in July 2026. AICPI-IW is the key data for calculating dearness allowance (DA) hike under the 7th Pay Commission norms.

The Labour Bureau under the Ministry of Labour and Employment on Monday, August 31, 2026, reported a 1.3-point increase in the AICPI-IW for July 2026. As per 7th Pay Commission, this data will be relevant for DA hike calculation of central government employees with effect from January 1, 2027.

As the 8th Pay Commission work underway, it remains to be seen whether the government will at all announce DA hike from January 1, 2027 under 7th CPC or merge the current DA with basic as an interim relief to employees before 8th CPC implementation.

“The All-India CPI-IW for July, 2026 increased by 1.3 points and stood at 153.2 points (one hundred fifty-three point two),”the Labour Bureau said in a press release dated August 31, 2026.

The year-on-year inflation for the month of July, 2026 stood at 4.57% as compared to 2.66% in July, 2025.

What does rising AICPI-IW mean for employees?

Rising AICPI-IW over the last few months simply means inflation is increasing for industrial workers. As per 7th CPC norms, the government uses this data to calculate the DA hike to neutralise the impact of inflation on central government employees' monthly pay.