The Ministry of Statistics and Programme Implementation (MoSPI) has released the Household Consumption Expenditure Survey (HCES) 2023-24, between August 2023 and July 2024, revealing key shifts in household spending patterns. According to the survey, in rural households, the share of food expenses rose to 47.04 per cent in 2023-24, compared to 46.38 per cent in the previous year. Vegetables emerged as a significant contributor, with their share climbing to 6.03 per cent from 5.38 per cent. Similarly, fruits witnessed a marginal rise to 2.66 per cent, while edible oils experienced a drop, with their share reducing to 2.77 per cent, down from 3.59 per cent. This decline corresponds with the deflation in edible oil prices during the survey period.
Household Food Spending Rises But Remains Below 50 Per Cent
As food spending increases, non-food items continue to account for a larger share of household budgets
In urban families, food-related spending increased from 39.17 per cent in 2022–2023 to 39.68 per cent, showing similar patterns. Expenditures on processed foods, dairy products, and vegetables continued to overshadow cereals, showcasing a shift in dietary preferences across rural and urban areas alike.
Additionally, the survey pointed out a decline in the disparity in consumption. In rural and urban areas, the Gini coefficient, a measure of economic disparity decreased from 0.27 and 0.31 in the previous year to 0.24 and 0.28, respectively.
The uptick in food expenditure, particularly for vegetables and fruits, aligns with sustained inflation, especially in vegetables, which saw double-digit price growth for over a year. However, deflation in edible oil prices moderated its share in household spending.
The survey indicated that, in spite of these increases, food spending has decreased dramatically from 2011–12, when it accounted for 52.9 per cent of household budgets. This shift highlights the increasing importance of non-food expenditures, which accounted for 52.96 per cent of rural spending in 2023-24, slightly lower than 53.62 per cent the year before. In urban areas, non-food spending also decreased to 60.32 per cent, even as categories like education, entertainment, and consumer services gained prominence.
Spending differences by region were apparent, with Chhattisgarh reporting the lowest per capita expenditure and Sikkim the highest. These differences underscore the diverse economic realities across states, influenced by factors such as income levels, access to resources, and local inflation trends.
The findings of the 2022–2023 survey will be used to recalculate GDP and the Consumer Price Index (CPI), with the revised series anticipated to be released in February 2026.
