As of September 2024, Mumbai had the highest cost of living among other cities in the country, with an index value of 26.5. Gurgaon, a satellite city of Delhi and part of the National Capital Region (NCR) followed it with an index value of 25.1.  What is cost of living? The cost of living varies depending on geographical regions and factors that affect the cost of living in an area include housing, food, utilities, clothing, childcare, and fuel among others. The cost of living is calculated based on different measures such as the consumer price index (CPI), living cost indexes, and wage price index. CPI refers to the change in the value of consumer goods and services. The wage price index, on the other hand, measures the change in labor services prices due to market pressures. Lastly, the living cost indexes calculate the impact of changing costs on different households. The relationship between wages and costs determines affordability and shifts in the cost of living. Mumbai tops the list Mumbai usually tops the list of most expensive cities in India. As the financial and entertainment hub of the country, Mumbai offers wide opportunities and attracts talent from all over the country. It is the second-largest city in India and has one of the most expensive real estates in the world.

The average for 2021 based on 10 countries was 59.91 index points. The highest value was in Singapore: 118.34 index points and the lowest value was in India: 40.44 index points. The indicator is available from 2017 to 2021. Below is a chart for all countries where data are available.

During the financial year 2023, the cost inflation index (CII) in India stood at 348. This was an increase from the previous year's figure of 331. The CII is used to compute an asset's inflation-adjusted cost price. It is used to assess the inflation value of assets like land, houses, jewelry etc.

The statistic shows the inflation rate in India from 1987 to 2023, with projections up until 2029. The inflation rate is calculated using the price increase of a defined product basket. This product basket contains products and services, on which the average consumer spends money throughout the year. They include expenses for groceries, clothes, rent, power, telecommunications, recreational activities and raw materials (e.g. gas, oil), as well as federal fees and taxes. In 2023, the inflation rate in India was around 5.36 percent compared to the previous year. See figures on India's economic growth for additional information. India's inflation rate and economy Inflation is generally defined as the increase of prices of goods and services over a certain period of time, as opposed to deflation, which describes a decrease of these prices. Inflation is a significant economic indicator for a country. The inflation rate is the rate at which the general rise in the level of prices, goods and services in an economy occurs and how it affects the cost of living of those living in a particular country. It influences the interest rates paid on savings and mortgage rates but also has a bearing on levels of state pensions and benefits received. A 4 percent increase in the rate of inflation in 2011 for example would mean an individual would need to spend 4 percent more on the goods he was purchasing than he would have done in 2010. India’s inflation rate has been on the rise over the last decade. However, it has been decreasing slightly since 2010. India’s economy, however, has been doing quite well, with its GDP increasing steadily for years, and its national debt decreasing. The budget balance in relation to GDP is not looking too good, with the state deficit amounting to more than 9 percent of GDP.

As of 2022, Israel had the highest price level index among listed countries, amounting to 138, with 100 being the average of OECD countries. Switzerland and Iceland followed on the places behind. On the other hand, Turkey and India had the lowest price levels compared to the OECD average. This price index shows differences in price levels in different countries. Another very popular index indicating the value of money is the Big Mac index, showing how much a Big Mac costs in different countries. This list was also topped by Switzerland in 2023.

Key information about India Consumer Price Index CPI growth

• India Consumer Price Index (CPI) growth was measured at 3.6 % YoY in Feb 2025, compared with a rate of 4.3 % in the previous month.
• India Consumer Price Index growth data is updated monthly, available from Jan 1958 to Feb 2025, with an averaged number of 6.6 % YoY.
• The data reached an all-time high of 34.6 % YoY in Sep 1974 and a record low of -11.3 % YoY in Jun 1976.

CEIC calculates Consumer Price Index Growth from monthly Consumer Price Index. Ministry of Statistics and Programme Implementation provides Consumer Price Index with base 2012=100. Consumer Price Index Growth prior to January 2012 is sourced from the International Monetary Fund and covers Industrial workers only. [COVID-19-IMPACT]

Although consumers around the globe wish to help protect the environment in 2022, many of them feel the current cost of living prevents them from doing so. Specifically, about two-thirds of global consumers reported wanting to do more, but that the cost of living is preventative. This sentiment was felt most in countries like Brazil and India.

In the second half of 2023, Hyderabad showed the highest growth of 11 percent in residential unit price. There was a general increase in prices per square feet in the residential market in all eight major metropolitan regions. The residential real estate market has slowly recovered from coronavirus pandemic. The coronavirus (COVID-19) pandemic as well as a high number of unsold inventories in many cities, especially in the premium and luxury segments, are perceived to be the main drivers for decreasing prices. India’s residential market While the majority of India’s population is still living in rural areas, urbanization is increasing. This results in a high demand for affordable housing in big cities for workers moving from rural parts of the country. Despite a new momentum in governmental efforts for affordable housing in recent years, there is still a gap between the low, middle, and high income groups in terms of demand and supply of housing units. The future outlook Over the last ten years, housing in the biggest Indian cities has become more affordable. Affordability sets income in relation to housing prices. Nevertheless, it is seen that the residential real estate market would continue to grow significantly in the coming years.

The combined consumer price index across India was 192.9 as of July 2024. Rural India registered a higher CPI as compared to urban India. The rural CPI has consistently stayed above than urban CPI during the recorded period. CPI measures the overall change in prices of goods and services for consumers.

It is estimated that more than two billion people suffer from ‘hidden hunger’ (micronutrient malnutrition) globally, with nearly half living in India. Despite being highlighted as one the most cost-effective investments for human development, progress on addressing micronutrient deficiencies (MiND) has been slowing. The severe social, health, and economic costs of MiND in India should make it a top priority for domestic governance and international donors alike. This study, for the first time, maps food system pathways from crop production through to household-level food availability, for a range of key vitamins, minerals, and amino acids. Results suggest widespread (>80% total Indian population) risk of deficiencies in calcium, vitamin A, B12, folate, in addition to lysine limitation, with more localized deficiencies (

Abstract

Objective of the consumer expenditure survey (CES): Firstly, as an indicator of level of living, monthly per capita expenditure (MPCE) is both simple and universally applicable. Average MPCE of any sub-population of the country (any region or population group) is a single number that summarises the level of living of that population. It is supplemented by the distribution of MPCE, which highlights the differences in level of living of the different parts of the population. More detailed analysis of the distribution of MPCE reveals the proportion and absolute numbers of the poor with respect to a given poverty line. A welfare state has to take note of these numbers in allocating its resources among sectors, regions, and socio-economic groups. The distribution of MPCE can also be used to measure the level of inequality, or the degree to which consumer expenditure is concentrated in a small proportion of households or persons, and this can be done without any predetermined poverty line or welfare norms.

If socialism was the ideal of the 1950's, the ideal of policy-makers during the last decade was "inclusive growth". Increasingly, inclusive growth is seen as the all-important target that we should aim at, at least for the immediate future. Not surprisingly, the NSS CES is being used by scholars as a searchlight focused on the country's development process that shows up just how inclusive the country's growth has been.

Since the data is collected not only on consumption level but also on the pattern of consumption, the CES has another important use. To work out consumer price indices (CPIs) which measure the general rise in consumer prices, one needs to know not only the price rise for each commodity group but also the budget shares of different commodity groups (used as weights). The budget shares as revealed by the NSS CES are being used for a long time to prepare what is called the weighing diagram for official compilation of CPIs. More extensive use of NSS CES data is planned to have a weighing diagram that uses a finer commodity classification, to prepare rural and urban CPIs separately for each State.

Apart from these major uses of the CES, the food (quantity) consumption data are used to study the level of nutrition of different regions, and disparities therein. Further, the budget shares of a commodity at different MPCE levels are used by economists and market researchers to determine the elasticity (responsiveness) of demand to income increases.

Two types of Schedule 1.0 viz. Schedule Type 1 and Schedule Type 2 was canvassed in this round. Schedule Type 1 and Type 2 are similar to those of NSS 66th round.

Reference period and schedule type: The reference period is the period of time to which the information collected relates. In NSS surveys, the reference period often varies from item to item. Data collected with different reference periods are known to exhibit certain systematic differences. Strictly speaking, therefore, comparisons should be made only among estimates based on data collected with identical reference period systems. In the 68th round - as in the 66th round -two schedule types have been drawn up. The two schedule types differonly in respect of reference period. Sample households were divided into two sets: Schedule Type 1 was canvassed in one set and Schedule Type 2 in the other.

Schedule Type 1 uses the same reference period system as Schedule Type 1 of NSS 66th round. Schedule Type 1 requires that for certain items (Clothing, bedding, footwear, education, medical (institutional), durable goods), the same household should report data for two reference periods - 'Last 30 days' and 'Last 365 days'. Schedule Type 2 has the same reference periods as Schedule Type 2 of NSS 66th round. For Group I items (Clothing, bedding, footwear, education, medical (institutional), durable goods), the reference period used in Schedule Type 2 is 'Last 365 days'.

As in the 66th round, items of food, pan, tobacco and intoxicants (Food-plus category) are split into 2 blocks - 5.1 and 5.2 - instead of being placed in a single block. • Block 5.1 consists of the item groups cereals, pulses, milk and milk products, sugar and salt. This block has a reference period of 30 days in both Schedule Type 1 and Schedule Type 2. • Block 5.2 consists of the other items of food, along with pan, tobacco and intoxicants. This block is assigned a reference period of 'Last 30 days' in Schedule Type 1 and a reference period of 'Last 7 days' in Schedule Type 2.

Thus Schedule Type 1, like Schedule 1.0 of NSS 66th round, uses the 'Last 30 days' reference period for all items of food, and for pan, tobacco and intoxicants.

Geographic coverage

The survey covers the whole of the Indian Union except (i) interior villages of Nagaland situated beyond five kilometres of the bus route and (ii) villages in Andaman and Nicobar Islands which remain inaccessible throughout the year.

Kind of data

Sample survey data [ssd]

Sampling procedure

Sample design

Outline of sample design: A stratified multi-stage design has been adopted for the 68th round survey. The first stage units (FSU) are the 2001 census villages (Panchayat wards in case of Kerala) in the rural sector and Urban Frame Survey (UFS) blocks in the urban sector. The ultimate stage units (USU) are households in both the sectors. In case of large FSUs, one intermediate stage of sampling is the selection of two hamlet-groups (hgs)/ sub-blocks (sbs) from each rural/ urban FSU.

Sampling Frame for First Stage Units: For the rural sector, the list of 2001 census villages (henceforth the term 'village' would include also Panchayat wards for Kerala) constitutes the sampling frame. For the urban sector, the list of UFS blocks (2007-12) is considered as the sampling frame.

Stratification: Within each district of a State/ UT, generally speaking, two basic strata have been formed: i) rural stratum comprising of all rural areas of the district and (ii) urban stratum comprising of all the urban areas of the district. However, within the urban areas of a district, if there are one or more towns with population 10 lakhs or more as per population census 2001 in a district, each of them forms a separate basic stratum and the remaining urban areas of the district are considered as another basic stratum.

Sub-stratification: Rural sector r: If 'r' be the sample size allocated for a rural stratum, the number of sub-strata formed would be 'r/4'. The villages within a district as per frame were first arranged in ascending order of population. Then sub-strata 1 to 'r/4' have been demarcated in such a way that each sub-stratum comprised a group of villages of the arranged frame and have more or less equal population. Urban sector: If 'u' be the sample size for an urban stratum, 'u/4' number of sub-strata have been formed. In case u/4 is more than 1, implying formation of 2 or more sub-strata, this is done by first arranging the towns in ascending order of total number of households in the town as per UFS phase 2007-12 and then arranging the IV units of each town and blocks within each IV unit in ascending order of their numbers. From this arranged frame of UFS blocks of all the towns/million plus city of a stratum, 'u/4' number of sub- strata formed in such a way that each sub-stratum has more or less equal number of households as per UFS 2007-12.

Total sample size (FSUs): 12784 FSUs have been allocated for the central sample at all-India level and 14772 FSUs have been allocated for state sample.

Allocation of total sample to States and UTs: The total number of sample FSUs has allocated to the States and UTs in proportion to population as per census 2001 subject to a minimum sample allocation to each State/ UT. While doing so, the resource availability in terms of number of field investigators has been kept in view.

Allocation of State/ UT level sample to rural and urban sectors: State/ UT level sample size has been allocated between two sectors in proportion to population as per census 2001 with double weightage to urban sector. However, if such weighted allocation resulted in too high sample size for the urban sector, the allocation for bigger states like Maharashtra, Tamil Nadu, etc. was restricted to that of the rural sector. A minimum of 16 FSUs (minimum 8 each for rural and urban sector separately) is allocated to each state/ UT.

Allocation to strata/ sub-strata: Within each sector of a State/ UT, the respective sample size has been allocated to the different strata/ sub-strata in proportion to the population as per census 2001. Allocations at stratum level are adjusted to multiples of 4 with a minimum sample size of 4. Allocation for each sub-stratum is 4. Equal number of samples has been allocated among the four sub-rounds.

Selection of FSUs: For the rural sector, from each stratum/ sub-stratum, required number of sample villages has been selected by probability proportional to size with replacement (PPSWR), size being the population of the village as per Census 2001. For the urban sector, UFS 2007-12 phase has been used for all towns and cities and FSUs have been selected from each stratum/sub-stratum by using Simple Random Sampling Without Replacement (SRSWOR). Both rural and urban samples are to be drawn in the form of two independent sub-samples and equal number of samples have been allocated among the four sub rounds.

Selection of hamlet-groups/ sub-blocks - important steps

Criterion for hamlet-group/ sub-block formation: After identification of the boundaries of the FSU, it is first determined whether listing is to be done in the whole sample FSU or not. In case the population of the selected FSU is found to be 1200 or more, it has to be divided into a suitable number (say, D) of 'hamlet-groups' in the rural

In a survey conducted in March 2022 about the impact of COVID-19 in India, nearly 53 percent of the respondents reported an increase in household spending in the past month. However, 27 percent of participants recorded a decrease in household expenses.

According to a survey conducted in June 2022 in India, 35 percent of urban respondents cut their expenses on clothes and accessories as the cost of living increased. Other major cost-cutting options among consumers are hobbies, leisure activities, and fuel spending.

The internet penetration rate in India rose over 52 percent in 2024, from about 14 percent in 2014. Although these figures seem relatively low, it meant that more than half of the population of 1.4 billion people had internet access that year. This also ranked the country second in the world in terms of active internet users. Internet availability and accessibility By 2021 the number of internet connections across the country tripled with urban areas accounting for a higher density of connections than rural regions. Despite incredibly low internet prices, internet usage in India has yet to reach its full potential. Lack of awareness and a tangible gender gap lie at the heart of the matter, with affordable mobile handsets and mobile internet connections presenting only a partial solution. Reliance Jio was the popular choice among Indian internet subscribers, offering them wider coverage at cheap rates. Digital living Home to one of the largest bases of netizens in the world, India is abuzz with internet activities being carried out every moment of every day. From information and research to shopping and entertainment to living in smart homes, Indians have welcomed digital living with open arms. Among these, social media usage was one of the most common reasons for accessing the internet.

The average salary for male employees in urban area was the highest during the months of April to June 2020 at about 21 thousand Indian rupees. The average salary drawn by female workers was the highest in the months of April to June 2020, however, lesser compared to their male counterparts. Unsurprisingly, the urban earnings in terms of wages and salaries are always higher than rural employees. Urban versus rural employment The gender gap in salaries was more prominent in rural areas, where, the male workers earned nearly an average of 1.5 times more. However, urban employees just earn a few thousands more than their rural counterpart, while, the cost of living in cities is twice as expensive as villages. Moreover, a majority of the Indian households belonged to the middle-income bracket and this is expected to increase in the future. Wage disparity Wage inequalities are present in almost every sector and widens with higher skill levels. With the evident gender disparity in the country, women with lower educational qualifications, such as a high school diplomas continue working despite the pay gap. This is among women who primarily come from the lower economic sector. Moreover, the social mobility index for fair wage distribution was 17.8 as of 2020, indicating a need for improvement.

Inflation is generally defined as the continued increase in the average prices of goods and services in a given region. Following the extremely high global inflation experienced in the 1980s and 1990s, global inflation has been relatively stable since the turn of the millennium, usually hovering between three and five percent per year. There was a sharp increase in 2008 due to the global financial crisis now known as the Great Recession, but inflation was fairly stable throughout the 2010s, before the current inflation crisis began in 2021. Recent years Despite the economic impact of the coronavirus pandemic, the global inflation rate fell to 3.26 percent in the pandemic's first year, before rising to 4.66 percent in 2021. This increase came as the impact of supply chain delays began to take more of an effect on consumer prices, before the Russia-Ukraine war exacerbated this further. A series of compounding issues such as rising energy and food prices, fiscal instability in the wake of the pandemic, and consumer insecurity have created a new global recession, and global inflation in 2024 is estimated to have reached 5.76 percent. This is the highest annual increase in inflation since 1996. Venezuela Venezuela is the country with the highest individual inflation rate in the world, forecast at around 200 percent in 2022. While this is figure is over 100 times larger than the global average in most years, it actually marks a decrease in Venezuela's inflation rate, which had peaked at over 65,000 percent in 2018. Between 2016 and 2021, Venezuela experienced hyperinflation due to the government's excessive spending and printing of money in an attempt to curve its already-high inflation rate, and the wave of migrants that left the country resulted in one of the largest refugee crises in recent years. In addition to its economic problems, political instability and foreign sanctions pose further long-term problems for Venezuela. While hyperinflation may be coming to an end, it remains to be seen how much of an impact this will have on the economy, how living standards will change, and how many refugees may return in the coming years.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2023. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 117.5 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

At 8.07 U.S. dollars, Switzerland has the most expensive Big Macs in the world, according to the July 2024 Big Mac index. Concurrently, the cost of a Big Mac was 5.69 dollars in the U.S., and 6.06 U.S. dollars in the Euro area. What is the Big Mac index? The Big Mac index, published by The Economist, is a novel way of measuring whether the market exchange rates for different countries’ currencies are overvalued or undervalued. It does this by measuring each currency against a common standard – the Big Mac hamburger sold by McDonald’s restaurants all over the world. Twice a year the Economist converts the average national price of a Big Mac into U.S. dollars using the exchange rate at that point in time. As a Big Mac is a completely standardized product across the world, the argument goes that it should have the same relative cost in every country. Differences in the cost of a Big Mac expressed as U.S. dollars therefore reflect differences in the purchasing power of each currency. Is the Big Mac index a good measure of purchasing power parity? Purchasing power parity (PPP) is the idea that items should cost the same in different countries, based on the exchange rate at that time. This relationship does not hold in practice. Factors like tax rates, wage regulations, whether components need to be imported, and the level of market competition all contribute to price variations between countries. The Big Mac index does measure this basic point – that one U.S. dollar can buy more in some countries than others. There are more accurate ways to measure differences in PPP though, which convert a larger range of products into their dollar price. Adjusting for PPP can have a massive effect on how we understand a country’s economy. The country with the largest GDP adjusted for PPP is China, but when looking at the unadjusted GDP of different countries, the U.S. has the largest economy.

According to a survey conducted in 2015 across India, over 60 percent of the surveyed households had an average monthly income up to 10,000 Indian rupees. This percentage varied among the rural and urban areas, where over 75 percent of the rural households and 45 percent of the urban households earned up to 10,000 Indian rupees monthly. India had a high rate of rural to urban migration, as Indian cities provided better standards of living and employment opportunities.

Multiple income generators

For most of the population, income is earned in form of wages or salary, rent from residential or commercial property, interest from financial investments, and profits from family businesses. Most Indian households have multiple earning members to support consumption expenses on a day to day basis. During the surveyed year, around 48 percent of the households had a single earner, mostly the head of the family, followed by about 30 percent of households with two earning members.

Employment scenario

There are a lot of uncertainties in the job market in India. Non-availability of jobs matching education and skills was one of the main reasons for unemployment among Indian graduates. Underemployment was also a problem, and it was higher in urban areas than rural ones. Even though a majority of the population was self-employed, most jobs taken by workers had no written job contracts in both the salaried and casual employment sectors.

The statistic shows the national debt in India from 2019 to 2022 in relation to gross domestic product (GDP), with projections up until 2029. In 2022, the national debt of India amounted to about 81.68 percent of the gross domestic product.

India’s economy on the rise

India is one of the most populous countries in the world, and although a large share of inhabitants are living below the poverty line – or probably due to this fact –, the country’s economy is growing steadily. India’s GDP growth is expected to remain steady at more than 7 percent for the next few years, which is almost double that of the global GDP, and both GDP and GDP per capita are expected to increase significantly.

Almost half of India’s workforce is employed in the agricultural sector, but services and industry share the other half quite equally. India’s GDP is mostly generated by the services sector, which includes transport, retailing, and offering services in the hospitality and tourism industry.

India’s trade balance has been in the red for a decade now, but seems to recover slowly. A trade deficit usually means that a country’s import costs are higher than the amount of money generated with exporting goods. India’s imports could not be compensated for by the country’s exports, as imports have been consistently, even if only slightly, higher over the years both in terms of volume and value.

Still, all signs point to India’s economy growing and thriving, reducing India’s debt (as seen above) and unemployment rate, enabling the inhabitants to create a better life for themselves.