Context

• Recently the National Sample Survey Office (NSSO), Ministry of Statistics and Program Implementation released comprehensive findings of the All India Household Consumption Expenditure Survey conducted between August 2022 and July 2023.

Key Points

• The objective of this survey on household consumption expenditure is to prepare estimates of household monthly per capita consumption expenditure (MPCE).
• The summary results of HCES: 2022-23 related to MPCE are being released in the form of a fact sheet.
• This data will play a vital role in reviewing key economic indicators including gross domestic product (GDP), poverty levels and consumer price inflation (CPI).
• The MPCE estimates are based on data collected from 2,61,746 households (1,55,014 in rural areas and 1,06,732 in urban areas) in a central sample spread across all states and union territories in the country.
• In HCES:2022-23, the general practice of applying price data to (i) domestic/household produced stocks and (ii) gifts, loans, free collections and consumption of goods received in exchange for goods and services etc. continued and accordingly, the estimate of MPCE has been prepared.
• Further, provision for collecting information on the quantity of consumption of several items received and consumed free of cost by households through various social welfare programs has been made in HCES:2022-23.
• According to the survey, the average MPCE in urban areas at current prices (without alternative data) is expected to more than double from Rs 2,630 in 2011-12 to Rs 6,459 in 2022-23.
• Similarly, in rural areas it has increased from Rs 1,430 to Rs 3,773.
• According to the study, the average MPCE in urban areas at 2011-12 prices (without alternative data) has increased from Rs 2,630 in 2011-12 to Rs 3,510 in 2022-23.

Importance of Consumer Expenditure Survey

• Estimates of monthly per capita consumption estimate demand and people's preferences for goods and services in an economy.
• Apart from this, it reflects the standard of living of the people and economic growth at various scales.
• It identifies structural anomalies and proves helpful in formulating economic policies so that demand patterns can be ascertained and producers of good and services can be helped.

About Consumer Expenditure Survey

• This is a five-year survey.
• It is published by the National Sample Survey Office of the Ministry of Statistics and Program Implementation.
• The Consumer Expenditure Survey shows the patterns of expenditure at the household level based on information collected from urban and rural areas across the country.
• On the basis of the data obtained from this survey, the average expenditure by a family on goods (food and non-food) and services and monthly per capita expenditure are estimated.