The latest Household Consumption Expenditure Survey (HCES) reveals a slight increase in the share of monthly per capita consumption expenditure (MPCE) on food items in both rural and urban areas during August 2023–July 2024 compared to the previous year. Experts caution that this rise, which falls within the margin of error, may indicate a temporary fluctuation rather than a long-term trend reversal.

In 2023–24, the proportion of MPCE spent on food items rose to 47.04% in rural areas and 39.7% in urban areas, compared to 46.4% and 39.2%, respectively, in 2022–23. According to the National Statistics Office (NSO), rural MPCE increased by 9.2% to ₹4,122, while urban MPCE grew by 8.3% to ₹6,996 during this period. These figures exclude the value of free items provided under social welfare programs.

The survey highlights marginally higher spending on cereals, with rural households allocating 4.99% of their MPCE and urban households 3.76%, compared to 4.91% and 3.64% in the previous year. However, average monthly cereal consumption declined slightly in both rural (from 9.61 kg to 9.35 kg) and urban areas (from 8.05 kg to 8.02 kg).

Expenditures on other food categories, such as beverages, pulses, vegetables, fruits, eggs, meat, and spices, also increased. On the other hand, spending on non-food items, including medical care, education, rent, fuel, and durable goods, decreased in rural households. Urban households reported reduced spending on items like pan, tobacco, fuel, medical care, conveyance, durable goods, and consumer services.

The gap between rural and urban household expenditure narrowed, with rural households now spending 69.7% of what urban households spend, down from 71.2% previously. Including the value of free social welfare items, rural MPCE was ₹4,247, and urban MPCE was ₹7,078.

Sikkim recorded the highest MPCE at ₹9,377 in rural areas and ₹13,927 in urban areas, while Chhattisgarh reported the lowest at ₹2,739 in rural and ₹4,927 in urban areas. Among Union Territories, Chandigarh led with ₹8,857 in rural and ₹13,425 in urban areas.

The survey, based on a sample of 261,953 households (154,357 rural and 107,596 urban), is the second conducted using improved methodology recommended by the National Statistical Commission. Experts, including former NSC chairman P.C. Mohanan and former chief statistician Pronab Sen, attribute the rise in food spending primarily to high food inflation and consider the observed variation within statistical margins of error.

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