Rural-urban household spending gap narrows
consumption has narrowed, and Indian household spending on non-food items has risen, showed the results of Household Consumption Expenditure Survey (HCES) 2022-23 released on Saturday.
Household spending increased 2.6 times in rural areas and 2.5 times in urban areas since the last survey, conducted in 2011-12. In 2022-23, average monthly per capita expenditure in rural areas was ₹3,773, compared with ₹6,459 in urban areas. The gap between urban and rural consumption has narrowed to 1.71 times in 2022-23 from 1.8 times in 2011-12.
Urban consumption was nearly double of rural consumption in 2004-05.
The survey results, which have been issued publicly after a hiatus of nearly a decade, will help determine a new consumer price index series, which relies on HCES to determine weights of food and non-food items. This will also help determine new estimates of poverty.
The latest results showed that rural households spent 46% on food and the rest on non-food items, whereas urban households spent 39% on food in 2022-23.
This marks a shift from 2011-12, when nearly 53% was spent on food in rural areas and 42.6% in urban areas.
The share of conveyance, for instance, has increased to 7.6% from 4.2% earlier, whereas that of durable goods has risen to 6.9% from 4.9% earlier.
While core inflation, excluding food and fuel, has been declining over the last few months, consumer inflation has largely been influenced by food. The new survey is also expected to change how inflation and poverty are calculated across states.
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