The Household Consumption Expenditure Survey released by NSSO indicates a significant change in spending patterns by consumers. Spending in rural areas increased by 164 per cent and in urban areas by 146 per cent since 2011-12 at current prices.
The data suggests spending on food has significantly dropped both in rural and urban areas. The contribution of food items in Monthly Per Capita Consumption Expenditure (MPCE) in 2022-23 has declined to 46 per cent from about 53 per cent in 2011-12 in rural areas and to 39 per cent from 43 per cent in 2011-12 in urban areas.
However, the contribution of non-food items in MPCE in 2022-23 has increased to 54 per cent from about 47 per cent in 2011-12 in rural areas and to 61 per cent from 57 per cent in 2011-12 in urban areas.
From 2011-12 to 2022-23, consumption shares for milk & milk products, fruits, egg, fish and meat, beverages and processed food, conveyance, and durable goods have risen in both rural and urban sectors.
NSSO data also suggest a decline in the urban-rural gap in average MPCE. In 2022-23, the gap narrowed to about 71 per cent from 84 per cent in 2011-12 at current prices.