The Household Consumption Expenditure Survey 2022-23 in India has prompted calls for the revision of weights in the Consumer Price Index (CPI), which tracks retail inflation. The survey reveals a decline in per capita spending on food items in both urban and rural areas. Monthly rural spending on food has dropped from 53% (2011-12) to 42% (2022-23), while urban spending has decreased from 43% to 39%. Cereal consumption shares have also fallen. The existing CPI weights are 54% for food and beverages in rural areas and 36% in urban areas. Analysts suggest the survey provides a strong case for updating CPI weights to reflect current consumption patterns.
Indian Consumption Survey Calls for Revision of Consumer Price Index Weights
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