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Informist, Friday, Dec. 27, 2024

 

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--MoSPI releases Household Consumption Expenditure Survey 2023-24 factsheet 
--MoSPI: Rural monthly per capita consumption INR 4,122 in 2023-24 
--MoSPI: Urban monthly per capita consumption INR 6,996 in 2023-24 
--MoSPI: Rural monthly per capita consumption in 2023-24 up 9.2% vs 2022-23 
--MoSPI: Urban monthly per capita consumption in 2023-24 up 8.3% vs 2022-23 
--MoSPI: Food 47.04% of 2023-24 rural monthly consumption vs 46.38% in 2022-23 
--CONTEXT: Share of food, beverages for rural India in current CPI is 54.18% 
--MoSPI: Food 39.68% of 2023-24 urban monthly consumption vs 39.17% in 2022-23 
--CONTEXT: Share of food, beverages for urban India in current CPI is 36.29% 
--MoSPI: Top 5% of rural India had INR 10,137 monthly consumption in 2023-24 
--MoSPI: Bottom 5% of rural India had INR 1,677 monthly consumption 2023-24 
--MoSPI: Top 5% of urban India had INR 20,310 monthly consumption in 2023-24 
--MoSPI: Bottom 5% of urban India had INR 2,376 monthly consumption 2023-24

 

NEW DELHI – Indian households' spending on food items as a share of total expenditure rose in 2023-24 (Aug-Jul) compared to a year ago, probably because the country faced high food inflation, according to the results of the household consumption expenditure survey released Friday.

 

Rural households spent 47.04% of their total expenditure on food items in 2023-24, against 46.38% in 2022-23. Similarly, the average spending on food items as a share of total expenditure by urban India rose to 39.68% in 2023-24, from 39.17% in 2022-23, the survey results showed.

 

The rise in households' spending on food as a share of total expenditure came at a time when inflation, particularly food inflation, remained high in India. CPI inflation averaged 5.1% during Aug-Jul, the period for which the survey was carried out, compared to 6.1% a year ago. But food inflation in the period rose to 8.2% from 6.0% a year ago, indicating that higher food inflation could be the reason for the rise in households' spending on food items as a share of total expenditure. 

 

The overall spending of households rose in 2023-24 from a year ago, the survey results showed. The average monthly per capita consumption expenditure rose 9.2% on year to INR 4,122 in 2023-24 for rural households, while it was up 8.3% at INR 6,996 for urban areas.

 

The Household Consumption Expenditure Survey is crucial for updating the CPI inflation series, which is still based on consumption patterns from the 2011-12 (Jul-Jun) survey. In the current CPI series, the share of food and beverages for rural India is 54.18% and 36.29% for urban areas. The combined weightage of food and beverages in the CPI series is 45.86%.

 

While a survey was done in 2017-18 (Jul-Jun), the government did not release its results, citing data quality issues. As per media reports, the leaked 2017-18 survey showed a decline in rural consumption in real terms. The statistics ministry planned to undertake a consumption expenditure survey during 2020-21 (Jul-Jun), but it was delayed because of the COVID-19 pandemic. Subsequently, after the return of normalcy, consecutive surveys were planned for 2022-23 (Aug-Jul) and 2023-24 (Aug-Jul). The results of the 2022-23 survey were released in February. The survey is also used for the revision of the base year for other macroeconomic indicators such as GDP.

 

The bottom 5% of India's rural population, ranked by monthly per capita consumption expenditure, on average spent INR 1,677 in 2023-24, while the bottom 5% of the urban population spent INR 2,376. The top 5% of India's rural and urban population on average spent INR 10,137 and INR 20,310, respectively, in 2023-24.

 

The single biggest head of expenditure for households, both rural and urban, in 2023-24 was the category of 'beverages, refreshments, processed food'. For rural households, the second-biggest expenditure head was milk and milk products, while for urban households it was conveyance.

 

While the share of food items in household spending rose in 2023-24, it was well below the levels seen in 2011-12. Rural households had spent 52.90% of their total expenditure on food in 2011-12, while the share of urban households' spending on food was 42.62%.

 

The average monthly per capita consumption expenditure with imputed values of free items in 2023-24 was estimated at INR 4,247 for rural India and INR 7,078 in urban India. These monthly per capita consumption expenditure estimates are derived after considering the value of items received free by households through various social welfare programmes.

 

Taking into account imputed monthly per capita consumption expenditure, the share of rural households' spending on food rose to 48.43%. The corresponding figure for urban households was 40.31%.  End

 

Reported by Shubham Rana

Edited by Rajeev Pai

 

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