December 28, 2024
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Household consumption momentum: rural gains narrow the urban rural consumption gap and reduce measured inequality in the latest survey.
The Household Consumption Expenditure Survey (HCES:2023-24), based on 261,953 households, provides two sets of MPCE estimates-excluding and including imputed values of items received free through social welfare programmes. Headline MPCE (excluding imputed values) rose nominally from 2022-23 with the largest proportional increases for the bottom fractiles. Non-food items account for the majority share of MPCE, with specific expenditure concentration in beverages and processed foods, conveyance, clothing and durables; urban rent is a notable non-food component. Consumption inequality declined in 2023-24, with lower Gini coefficients in both rural and urban areas.