Consumer Price Index for Agricultural Labourers and Industrial Workers (CPI AL & IW) data is used in several important ways:

1. Macroeconomic Indicator: CPI serves as a key indicator of inflation, reflecting changes in the cost of living by measuring price changes of a basket of goods and services consumed by households.
2. Inflation Targeting: The government and the Reserve Bank of India (RBI) use CPI for inflation targeting to maintain price stability. The RBI sets and monitors inflation targets based on CPI data.
3. Policy Making: CPI data helps policymakers in formulating and adjusting economic policies, particularly those related to monetary policy, wage adjustments, and social security benefits.
4. Indexation of Wages: The CPI is used for indexing dearness allowance to employees. This means that wages are adjusted according to changes in the CPI to compensate for inflation and maintain the purchasing power of consumers.
5. Accounts Deflators: CPI is used as a deflator in the state accounts, which helps in converting nominal economic indicators into real terms, thereby reflecting the true economic growth without the influence of price changes.
6. Business and Consumer Decisions: Businesses and consumers use CPI data to make informed decisions based on the prevailing economic conditions, such as planning budgets and setting prices for goods and services.