India's average household consumption (per capita) increased by 3.5% in real terms from August 2023 to July 2024 compared to the previous year.
The rise in consumption signals a decline in inequality, with a narrowing gap between urban and rural household expenditures.
Rural Monthly Per Capita Expenditure (MPCE) grew by 3.53% to ₹2,079.
Urban MPCE grew at a slightly slower pace of 3.48% to ₹6,996.
Non-food items make up the majority of household spending, with 53% in rural areas and 60% in urban areas.
Spending on food, especially edible oils, declined, although the overall food inflation still impacted the wallet share of items like vegetables.
The urban-rural gap in MPCE reduced to 70% in 2023-24, down from 84% in 2011-12, showing a significant shift.
The Household Consumption Expenditure Survey (HCES) is used to assess economic well-being, estimate poverty levels, and revise the Consumer Price Index (CPI).
The Gini coefficient (a measure of inequality) declined in both rural (0.237 in 2023-24, down from 0.266) and urban areas (0.284 in 2023-24, down from 0.314), indicating reduced consumption inequality.
The survey included data from 2,61,953 households across all states and union territories, with 59% of the households surveyed from rural areas.
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