CPI(UNME)

 

The need for an all Indian middle class cost of living index was felt on several occasions in connection with the fixation and adjustments of emoluments of Central Government employees. The Central Statistical Organisation carried out a family living survey of urban middle class population during 1958-59 to facilitate construction of middle class cost of living indices. On the basis of this survey data, a cost of living index number named as CPI(UNME) on base1960=100 was compiled and published since 1961.
This index depicts the changes in the level of average retail prices of goods and services consumed by the urban segment of the population. The target group of this index was urban families who derived major portion of their income from non manual occupations in the non-agricultural sector.This index had a limited use as it was used for determining dearness allowances of employees of some foreign companies working in India in service sectors such as airlines, communications, banking, insurance and other financial services. Release of Centre-wise monthly CPI (UNME) on the basis of 1984-85 =100 has been discontinued since April 2008 as per the recommendation of National Statistical Commission because of outdated base year and also deployment of field investigators for collection of price data for a broad based CPI (Urban) index. The Commission also decided that release of all-India linked CPI (UNME) would continue till CPI (Urban) is brought out. The monthly linked all India CPI (UNME) was being compiled by linking to CPI (IW) with base 2001=100 and taking CPI (UNME) as weights. This index was released with a time lag of two moths, usually during the third week of the month. The release of all-India linked CPI(UNME) has been discontinued with effect from January 2011