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Thread: Cabinet approoved additional 5% DA w.e.f 01.07.09

  1. #1
    Member akraiism is on a distinguished road
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    Default Cabinet approoved additional 5% DA w.e.f 01.07.09

    Just now Cabinet approoved additional 5% DA w.e.f 01.07.09.

  2. #2
    Senior Member ramanrao60 is on a distinguished road
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    Default da

    how come on one hand govt says inflation is negitive and v get 5%da?neverthe less good news at right time

  3. #3
    Member venkatcustoms is on a distinguished road
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    Question

    Quote Originally Posted by ramanrao60 View Post
    how come on one hand govt says inflation is negitive and v get 5%da?neverthe less good news at right time
    Can anybody explain how the inflation is arrived at? The prices of essential commodities like rice, wheat, pulses are skyhigh and yet the inflation is at negative.

  4. #4
    Junior Member jarunan is on a distinguished road
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    Smile DA Calculation

    MONTH INDEX
    Jul-08 143
    Aug-08 145
    Sep-08 146
    Oct-08 148
    Nov-08 148
    Dec-08 147
    Jan-09 148
    Feb-09 148
    Mar-09 148
    Apr-09 150
    May-09 150
    Jun-09 150
    total 1771
    average 147.5833333
    base 115.76
    %da 27.49078553 = ((avg index-base index)/base index) x 100

    Is it o.k.?

  5. #5
    Junior Member jarunan is on a distinguished road
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    Default

    jokes apart, inflation is a measure of buying capacity. When the buying capacity is more and the demand is also there, inflation tends to be on the higher side. When the buying capacity is less the demand comes down and added to that when the cost of the articles are high the demand is driven down further. This gives rise to negative inflation (deflation?). We are going through that phase now I think. Does the reversal of the inflation from negative to positive means that the recession is flattening out if not reversing?
    Am I correct on the inflation?

  6. #6
    Senior Member ramanrao60 is on a distinguished road
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    Default da

    i thought the indices part is ok-

    but i was wondering if you see the history of da releases for the past 7 yrs or so, you will find that highest 6 monthly instalment of da has been 6% and the lowest 3%,where as for most of the time inflation was near 7-8%.

    for the last one year inflation was below 1% or negitive and still 5%da is given and the prices too are going thru the roof

    its got something to do with wholesale price index and consumer price index i beleive

    not out of place to recall that what statistics reveals is substantial but what it conceals is vital(a la a two piece bikini)

  7. #7
    Junior Member jarunan is on a distinguished road
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    Default DA

    Ofcourse, the WPI does play a part in the calculation of the DA. The details of them month wise was earlier given in the table.

    I believe, while those are the technical statistics which go in the determination of the DA, the physical/ psychoological side of the economics get into the demand-supply situation and give a lopsided view. regards.

  8. #8
    Member pkkanwal is on a distinguished road
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    Default

    MoF/DoPT has not issued any OM/notification for 5% day released last week by the Cabinet yet. Please clarify.

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