New Delhi, Sept. 1 -- The All-India Consumer Price Index for Industrial Workers (CPI-IW) rose 1.3 points to 153.2 in July 2026, giving the first indication of where Dearness Allowance (DA) for central government employees could head from January 2027.

The Labour Bureau, under the Ministry of Labour and Employment, released the July CPI-IW data on 31 August. The index rose from 151.9 in June 2026. Year-on-year CPI-IW inflation stood at 4.57% in July, against 2.66% a year earlier.

Under the 7th Pay Commission framework, DA is revised twice a year, effective 1 January and 1 July, and the calculation is linked to the CPI-IW.

The calculation for the January 2027 DA revision uses the 12-month CPI-IW average from August 2025 to July 2026. The...