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Expected DA Hike from July 2026: CPI-IW March 2026 Released, DA May Rise by 3%

EXPECTED DA INCREASE FROM JULY 2026

Based on Labour Bureau CPI-IW March 2026 Press Release | F.No. 5/1/2021-CPI

Reference F.No. 5/1/2021-CPI

Department Labour Bureau, M/o Labour

CPI-IW March 2026 149.1 Points

Current DA (Jan 2026) 60%

Projected DA from July 2026

~63%

Expected hike of approximately +3% from current 60%
(Subject to Apr-Jun 2026 CPI data)

CPI-IW Increase

+0.6 Points

Feb 148.5 → Mar 149.1

Y-o-Y Inflation

4.27%

Mar 2026 vs Mar 2025 (2.95%)

Markets Covered

317 Markets

Across 88 Centres

Group-wise CPI-IW (Feb & Mar 2026)

Comparative index values for all major commodity groups as released by the Labour Bureau:

Food & Beverages

151.6

Up from 151.1 in Feb 2026

Pan, Supari, Tobacco

172.9

Up from 171.7 in Feb 2026

Clothing & Footwear

155.5

Up from 155.0 in Feb 2026

Housing

140.6

Unchanged from Feb 2026

Fuel & Light

158.0

Up from 152.9 in Feb 2026 (+5.1)

Miscellaneous

146.4

Up from 146.2 in Feb 2026

Key Highlights

CPI-IW March 2026: The All-India Consumer Price Index for Industrial Workers stands at 149.1 points, an increase of 0.6 points from February 2026 (148.5).
Year-on-Year Inflation: Inflation for March 2026 stood at 4.27% compared to 2.95% in March 2025, indicating rising price pressure.
Fuel & Light Surge: The Fuel & Light group recorded the highest month-on-month increase, rising from 152.9 to 158.0 points.
DA Calculation Basis: Dearness Allowance is calculated using the 12-month average of CPI-IW (Base 2016=100) with a linking factor of 2.88 for the 2001 series.
Expected July 2026 DA: Based on current trends, DA is projected to increase by approximately 3 percentage points, taking the total from 60% to around 63%.
Data Coverage: Index compiled from retail prices collected across 317 markets spread over 88 industrially important centres in India.

Frequently Asked Questions

What is the CPI-IW for March 2026?

The All-India CPI-IW for March 2026 stands at 149.1 points, released by the Labour Bureau under the Ministry of Labour & Employment.

How is DA calculated from CPI-IW data?

DA is calculated using the 12-month average of CPI-IW (Base 2016=100). The formula is: DA% = [(12-month avg CPI × 2.88) − 261.42] ÷ 261.42 × 100. The linking factor of 2.88 bridges the 2016 and 2001 base series.

What is the expected DA from July 2026?

Based on the March 2026 CPI-IW of 149.1 and prevailing trends, the expected DA from July 2026 is projected at approximately 63%, reflecting a hike of about +3% from the current 60%. The final figure depends on Apr-Jun 2026 data.

Which group saw the highest price rise in March 2026?

The Fuel & Light group recorded the highest increase, jumping from 152.9 to 158.0 points (+5.1), followed by Pan/Tobacco (171.7 to 172.9) and Food & Beverages (151.1 to 151.6).

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