Context:
The monthly per-capita consumption expenditure (MPCE) on food items was highest in Assam (53.2 per cent), followed by Bihar (52.5 per cent), West Bengal (51.5 per cent), and Meghalaya (50.3 per cent) during the period from August 2023 to July 2024, according to the latest report of the Household Consumption Expenditure Survey released by the National Statistics Office (NSO).
Key Findings:
- Highest Share of Food Expenditure by State
- Rural areas Assam 53.2%, Bihar 52.5%, West Bengal 51.5% and Meghalaya 50.3%.
- Lowest Share
- Kerala 40.32% and Delhi 40.32% followed by Punjab 42.43% and Maharashtra 42.74%.
- Spending on Beverages Processed Food
- Households in Arunachal Pradesh 15.8%, Assam 12.8% Bihar 10.46% and West Bengal 10.3 % spent the largest share of their budget on beverages and processed foods.
- Percentage Share of Cereals
- Maximum in rural regions Jharkhand at 7.9%, Odisha at 7.5%, Bihar at 6.59% and West Bengal at 6.46%.
- Highest in urban areas Manipur at 6.7%, Jharkhand at 5.84% and Bihar at 5.76%.
- National Level Patterns of Food Spending
- Rural Areas
- Food constituted 47.04% of the total MPCE compared to 46.4% in 202-223
- Urban areas
- Food expenditure accounted for 3.97% up from 3.92% in 2022-23.
- Rural Areas
According to experts these changes are within the margin of error not an indication of any trend shift in the market.
- Rise in Overall MPCE
- Rural MPCE Registered a 9.2 per cent to Rs 4,122.
- Urban MPCE
- At 8.3 per cent to Rs 6,996 over the same period.
- The figures do not include items received free of charge by households.
Monthly per-Capita Consumption Expenditure (MPCE)
According to experts these changes are within the margin of error not an indication of any trend shift in the market.
- Rise in Overall MPCE
- Rural MPCE Registered a 9.2 per cent to Rs 4,122.
- Urban MPCE
- At 8.3 per cent to Rs 6,996 over the same period.
- The figures do not include items received free of charge by households.
“Per-capita consumption expenditure (MPCE)” refers to the average amount of money spent by each individual in a population on consuming goods and services, calculated by dividing the total consumption expenditure of all households by the total population; essentially, it indicates the average spending power of people in a region or country.
Key points about MPCE:
- Economic indicator:MPCE is a significant economic indicator used to understand the living standards and poverty levels within a population.
- Calculation:To calculate MPCE, you take the total household consumption expenditure and divide it by the total number of people in the population.
- Data source:This information is typically gathered through household consumption expenditure surveys conducted by government agencies.
- Rural vs. Urban:MPCE is often analyzed separately for rural and urban areas to understand disparities in spending patterns.
