The government released the findings of the All India Household Consumption Expenditure Survey, conducted between August 2022 and July 2023, after an 11-year gap. This survey is crucial for evaluating economic indicators like GDP, poverty levels, and Consumer Price Inflation (CPI).
Frequency of the Survey
The Household Consumption Expenditure Survey (HCES) is typically conducted every five years by the National Statistical Office (NSO). However, the previous survey conducted in 2017-18 was not released due to cited “data quality” issues.
Key Findings
- Increase in Per Capita Consumption Expenditure (MPCE):
- Urban households witnessed a 33.5% rise to ₹3,510, while rural households saw a 40.42% increase to ₹2,008 since 2011-12.
- Shift in Spending Patterns:
- Proportion of spending on food decreased:
- Rural households: from 52.9% (2011-12) to 46.4%.
- Urban households: from 42.6% (2011-12) to 39.2%.
- Proportion of spending on food decreased:
- Impact on Retail Inflation:
- Reduced spending on food could lower the weightage for food prices in the country’s retail inflation calculations.
- Inclusion of Non-Food Items in MPCE:
- Imputed values of items received free of cost were separately calculated.
- MPCE increased when including items like computers, mobile phones, bicycles, and clothing.
Detailed Report
The Statistics and Programme Implementation Ministry released a factsheet summarizing the survey findings. A comprehensive report on the survey will follow.
Data Collection
Data was collected from 2,61,746 households, with 1,55,014 in rural areas, covering all States and Union Territories.
Socioeconomic Disparities
- Bottom 5% Population:
- Rural: Average MPCE of ₹1,373.
- Urban: Average MPCE of ₹2,001.
- Top 5% Population:
- Rural: Average MPCE of ₹10,501.
- Urban: Average MPCE of ₹20,824.
Regional Disparities
- Highest MPCE: Sikkim
- Rural: ₹7,731
- Urban: ₹12,105
- Lowest MPCE: Chhattisgarh
- Rural: ₹2,466
- Urban: ₹4,483
Multiple Choice Questions (MCQs):
- What is the frequency of the Household Consumption Expenditure Survey (HCES)?
- A) Every 3 years
- B) Every 5 years
- C) Every 7 years
- D) Every 10 years
- Answer: B) Every 5 years
- Which economic indicators are evaluated using the survey findings?
- A) Gross Domestic Product (GDP)
- B) Unemployment Rate
- C) Foreign Exchange Reserves
- D) Stock Market Index
- Answer: A) Gross Domestic Product (GDP)
- What is the approximate increase in average monthly per capita consumption expenditure (MPCE) for rural households since 2011-12?
- A) 25%
- B) 30%
- C) 35%
- D) 40%
- Answer: D) 40%
- How did the proportion of spending on food change for urban households from 2011-12 to the latest survey?
- A) Increased
- B) Decreased
- C) Remained the same
- D) Fluctuated
- Answer: B) Decreased
- Which state exhibits the highest MPCE for urban households?
- A) Sikkim
- B) Chhattisgarh
- C) Maharashtra
- D) Bihar
- Answer: A) Sikkim