New Delhi, Oct. 1 -- The All-India Consumer Price Index for Industrial Workers (CPI-IW) rose 1.2 points to 154.4 in August 2026, from 153.2 in July, providing the latest indication of where the Dearness Allowance (DA) for central government employees could head from January 2027.

The Labour Bureau released the August CPI-IW data on 30 September. Year-on-year inflation based on the index stood at 4.96% in August, compared with 4.57% in July.

Under the 7th Pay Commission framework, DA is revised twice a year and the calculation is linked to the CPI-IW. The August reading has now taken the running January 2027 DA calculation to about 65%.

The January 2027 DA calculation uses the 12-month average of CPI-IW. With August 2026 data included, ...