EXPECTED DA FROM JULY 2012
MAY BE 7% AGAIN
Subject
to AICIN data for the next two months remaining in the current level, the
following assumption is being made.
The
AICPIN data for April 12 has been recently published. It rises to 4 points and
reached 205. We know that D.A. is calculated on the basis for 12 months
average. To calculate the D.A. payable from 1st July 2012, we need the figures
of May and June 2012 which are to be released on 30.06.12 and 31.07.12
respectively. If the data remains for the next two months in the same level,
i.e. 205, the hike will be 7%. Even if it marginally drops 1 point in any of
the months, the rise will be still 7% which will take the total D.A. to 72%.
Considering
the latest hike in petrol price, it is unlikely that the index may drop in the
next months. So we can guess the next D.A. hike @7%, revising our previous
guess work.