In India, which organisation is responsible for compiling and publishing the Consumer Price Index (CPI) number for industrial workers?

Introduction / Context:
Consumer Price Indices are key indicators for measuring inflation and changes in the cost of living for different groups of consumers. In India, there are specific indices for industrial workers, agricultural labourers, and other categories. Competitive examinations often test whether candidates know which agency is responsible for compiling the Consumer Price Index number for industrial workers. This question focuses on identifying that specific institution.

Given Data / Assumptions:

• We are dealing with the Consumer Price Index for industrial workers, not a general wholesale index or other inflation measure.
• Several economic and policy institutions exist in India, including the central bank and planning bodies.
• One specialised agency under the Ministry of Labour and Employment historically compiles this index.
• The task is to match the correct organisation to this responsibility.

Concept / Approach:
The Labour Bureau, with offices at Shimla and Chandigarh, is the specialised agency that collects data on wages, prices, and labour conditions and compiles indices such as the Consumer Price Index for industrial workers. While the Reserve Bank of India and NITI Aayog use inflation data for policy analysis, they are not the primary compilers of this particular index. The Department of Commerce deals mainly with trade policy and export promotion, not with detailed price index compilation for workers. Therefore, the correct answer is the Labour Bureau, which performs regular surveys of retail prices faced by industrial worker households in selected centres and uses these data to construct and publish the CPI for industrial workers.

Step-by-Step Solution:
Step 1: Identify that the index in question is the Consumer Price Index for industrial workers. Step 2: Recall that labour related statistics, including wage and price indices for workers, are handled by an agency under the Ministry of Labour and Employment. Step 3: Remember that the Labour Bureau is specifically tasked with compiling this CPI, based on periodic price collection in selected industrial centres. Step 4: Compare this role with that of the Reserve Bank of India, which mainly uses price indices for monetary policy rather than compiling the CPI for industrial workers. Step 5: Note that the Department of Commerce and NITI Aayog have different mandates related to trade and long term planning and do not compile this index. Step 6: Conclude that the Labour Bureau is the correct organisation responsible for bringing out the Consumer Price Index number for industrial workers.

Verification / Alternative check:
A quick check is to think about which ministry is most closely linked with workers, wages, and labour statistics. That ministry is the Ministry of Labour and Employment, and the Labour Bureau functions under it. Official publications and exam guides consistently associate the CPI for industrial workers with the Labour Bureau. The Reserve Bank of India uses CPI data for inflation targeting but does not normally compile this index. This cross check confirms that option B is correct.

Why Other Options Are Wrong:
Reserve Bank of India: The central bank analyses and publishes inflation data in reports such as the monetary policy statement but does not compile the CPI for industrial workers; it relies on indices compiled by other agencies.
Department of Commerce: This department focuses on trade, exports, and commerce related policies and does not handle detailed labour price statistics for industrial workers.
NITI Aayog: This body is concerned with strategic planning and policy think tank functions and does not carry out the regular statistical work needed to compile the CPI for industrial workers.

Common Pitfalls:
Many learners assume that since the Reserve Bank of India deals extensively with inflation and interest rates, it must also compile all major price indices. This is not the case; different agencies compile different indices, and the central bank uses them for policy. Another pitfall is not distinguishing between general planning bodies and specialised statistical agencies. Remembering that the Labour Bureau is dedicated to labour and wage statistics makes it easier to correctly answer questions about the CPI for industrial workers.

Final Answer:
The Consumer Price Index number for industrial workers in India is compiled and published by the Labour Bureau.