Household Consumption Expenditure Survey (HCES) 2022-23

The Ministry of Statistics and Programme Implementation (MoSPI) recently released the highlights of the latest nationwide Household Consumption Expenditure Survey (HCES) conducted during 2022-23 by the National Statistical Office. This survey comes after a significant gap since the last release for 2011-12, with the 2017-18 round not being released post demonetisation and GST implementation.

The HCES tracks detailed household spending data across various categories such as food, education, health, and transportation, providing insights into consumption behavioral shifts. The report reveals an increase in rural consumption spending, with rural average monthly consumption per person rising by 164% from 2011-12 to 2022-23, compared to a 146% increase in urban areas. This data marks an improving parity between rural and urban consumption.

A significant change in purchase priorities has been observed, with a boost in rural non-food spending. The share of non-food products in the monthly rural consumption budget expanded from 47% to 54%, while food items share dropped from 53% to 46%. The survey also reports on the economic disparities within rural and urban populations, noting the differences in average Monthly Per Capita Consumption Expenditure (MPCE) among the top and bottom percentages of these populations.

NITI Aayog’s CEO, B.V.R. Subrahmanyam, highlighted the survey’s indication of historically low poverty levels, with less than 5% of the population falling below the economic poverty marker of a monthly income under ₹5000.

MoSPI has announced that a detailed report will be released soon, which is expected to play a pivotal role in reviewing critical economic indicators such as the Gross Domestic Product (GDP), poverty levels, and the Consumer Price Inflation (CPI).