©Reuters. FILE PHOTO: Shoppers buy packets of vegetable oil at a supermarket in Mumbai, India, March 7, 2022. REUTERS/Rajendra Jadhav/File Photo
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MUMBAI (Reuters) – Indians are spending less on food, particularly staples such as rice and wheat, and more on discretionary goods such as processed foods, as well as durable goods such as televisions and refrigerators, consumer data show. government.
The survey of household consumption expenditure, released on Saturday evening, estimates that average rural consumption expenditure rose to 3,773 rupees ($45.54) per month per person for the 12 months through July, up from 1,430 rupees of the previous survey in 2011-2012, while urban spending rose to 6,459 rupees ($77.95) from 2,630 rupees.
Prime Minister Narendra Modi’s government did not release a 2017-2018 survey due to what it called “data quality issues.” The decision sparked controversy over whether the administration was withholding economic data.
The government denied that the data was withheld because it showed weak consumption trends.
The new survey will form the basis for a revision of India’s consumer price inflation index.
Food spending fell to 46% of monthly consumption for rural consumers from nearly 53% in 2011-2012, while in urban areas it fell to 39% from 43%.
Indians spend less on grains, including wheat, rice and pulses, but more on beverages, beverages and processed foods.
Among non-food goods, consumers spend more on transportation, consumer services and durable goods, such as televisions and refrigerators.
The results come before India goes to the polls in elections due later in May, with Modi seeking a rare third term.
While India’s economy is expected to grow at a world-beating rate of 7.3% in the fiscal year that began in April and 7% in the next fiscal year, much of the population living in rural areas faces stagnant incomes and high inflation.
($1 = 82.8590 Indian Rupees)