Answer: Consumer Price Index (CPI)
Notes: Dearness Allowance for government employees and pensioners in India is calculated based on the Consumer Price Index (CPI). The CPI-IW with base year 2016=100 is used for these calculations. DA is typically revised twice a year, in January and July. Its calculation aims to offset inflation effects. The formula for DA involves the average of AICPI for the past 12 months and the designated base index.
