Meanwhile, the survey showed that the urban-rural gap in MPCE has declined to 71% in 2022-23 from 84% in 2011-12. It has further come down to 70% in 2023-24 that "confirms sustained momentum of consumption growth in rural areas", the statistics ministry said in a release.
"Increased spending on food items by households is a direct consequence of high food inflation," said Indranil Pan, chief economist, Yes Bank. "But less spending on discretionary items also shows a decline in consumption, partly due to low real-wage growth this year," Pan added.
Former Reserve Bank of India (RBI) governor Shaktikanta Das had stated in the latest MPC minutes that lower inflation will enhance disposable income with households and increase their purchasing power. "Such an approach would support consumption and investment demand," he said.
In August 2023-July 2024, the reference period of the HCES 2023-24, food inflation averaged 8.3% against 6% in the same period of last year, whereas CPI inflation during the period averaged 5.1% against 6.1% in August 2022-July 2023.
The survey revealed that, in nominal prices, the average MPCE (without imputation) in 2023-24 increases by about 10% in rural areas to ₹4,247 and 8% in urban areas to ₹7,078 from the level of 2022-23.
This story is from the December 28, 2024 edition of Financial Express Pune.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 28, 2024 edition of Financial Express Pune.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Microsoft to spend $80 billion on AI data centers this year
MICROSOFT CORP PLANS to spend $80 billion this fiscal year building out data centers, underscoring the intense capital requirements of artificial intelligence.
Mike Johnson Re-elected US House Speaker
Republican Congressman Mike Johnson on Friday was re-elected as Speaker of the US House of Representatives with a narrow victory margin of three votes.
Rohit clears the air: Not going anywhere
Says those on outside can't influence when he stops playing
S Korea investigators ask acting prez to clear way for Yoon's arrest
SOUTH KOREAN INVESTIGATORS again asked the country's acting president on Saturday to order the presidential security service to comply with an arrest warrant for impeached President Yoon Suk Yeol.
Border-Gavaskar Trophy: As Bumrah leaves, 'captain' Kohli calls the shots
Kohli took charge after Bumrah left bowling due to spasm
No jail time for Trump, suggests judge in US hush money case
Will keep fighting, says communications director Cheung
Big rockets, a telescope & big changes in space await in 2025
Some key events to look forward to in space & astronomy
The Fall season
Fun and games for the elite players, the Fall Series gave the fans plenty to watch
Worrying signs from the Arctic
Scientists say fires in the region could have major consequences
Dr Manmohan Singh, RIP
emissary he had deployed. Although sceptical, I bounded off to North Block and was ushered in. It was my first official meeting with the FM. I conveyed the request, not a direction, of the prime minister. Dr Singh was puzzled — I could see that on his face — by the message or, perhaps, the messenger. He listened politely and told me that the second step had already been taken within minutes of the markets opening at 10 am.
