Cost of Living in India 2026: Official Spending Data
India's statistics ministry, MoSPI, measures the cost of living from three directions: what households spend, how fast prices are rising and what workers earn. This guide puts the three side by side. The spending figures come from the Household Consumption Expenditure Survey 2023-24, the inflation figures from the Consumer Price Index release of 12 October 2026, and the earnings figures from the Periodic Labour Force Survey annual report for 2025. Every number below was read in those documents on 13 October 2026. Spending is given per person per month, which is how the survey reports it.
Quick answer
Average monthly per capita consumption expenditure in 2023-24 was Rs. 4,122 in rural India and Rs. 6,996 in urban India. Among the 18 major states, urban spending ran from Rs. 4,927 in Chhattisgarh to Rs. 8,978 in Telangana. Retail inflation in September 2026 was 5.54%, and food inflation was 7.74%. In regular wage and salaried employment, average earnings in 2025 were ₹24,217 for men and ₹18,353 for women.
What households spend, state by state
The survey's main indicator is Monthly Per Capita Consumption Expenditure, or MPCE. The 2023-24 estimates are based on data from 2,61,953 households and cover August 2023 to July 2024. These are the figures for the 18 major states, without the imputed value of items households receive free through social welfare programmes.
| State | Rural MPCE (Rs.) | Urban MPCE (Rs.) |
|---|---|---|
| Telangana | 5,435 | 8,978 |
| Haryana | 5,377 | 8,427 |
| Tamil Nadu | 5,701 | 8,165 |
| Karnataka | 4,903 | 8,076 |
| Kerala | 6,611 | 7,783 |
| Maharashtra | 4,145 | 7,363 |
| Punjab | 5,817 | 7,359 |
| Andhra Pradesh | 5,327 | 7,182 |
| Gujarat | 4,116 | 7,175 |
| Assam | 3,793 | 6,794 |
| Rajasthan | 4,510 | 6,574 |
| Odisha | 3,357 | 5,825 |
| West Bengal | 3,620 | 5,775 |
| Madhya Pradesh | 3,441 | 5,538 |
| Uttar Pradesh | 3,481 | 5,395 |
| Jharkhand | 2,946 | 5,393 |
| Bihar | 3,670 | 5,080 |
| Chhattisgarh | 2,739 | 4,927 |
| All-India | 4,122 | 6,996 |
Three things to read from the table:
- These are per person. Multiply by the number of people in your household to get a household figure.
- City life costs more. At the all-India level urban MPCE was 70% above rural MPCE in 2023-24. The gap was lowest in Kerala, at about 18%, and highest in Jharkhand, at around 83%.
- They are averages across all households. Urban households of the regular wage or salaried type averaged Rs. 7,606 per person, against Rs. 4,964 for casual labour households.
Counting the imputed value of free items, the all-India figures rise to Rs. 4,247 in rural areas and Rs. 7,078 in urban areas.
Where the money goes
In urban India, food made up about 40% of MPCE in 2023-24 and non-food items around 60%. In rural India, food accounted for about 47%.
| Urban India, 2023-24 | Share of MPCE |
|---|---|
| Beverages, refreshments and processed food | 11.09% |
| Conveyance | 8.46% |
| Milk and milk products | 7.19% |
| Miscellaneous goods and entertainment | 6.92% |
| Durable goods | 6.87% |
| Rent | 6.58% |
| Vegetables | 4.12% |
In rural India the largest non-food items were conveyance at 7.59%, medical at 6.83%, clothing, bedding and footwear at 6.63% and durable goods at 6.48%.
Prices in 2026
MoSPI's National Statistics Office released the Consumer Price Index for September 2026 on 12 October 2026. The index uses 2024 as its base year, and the September figures are provisional.
| Year-on-year inflation, September 2026 | Rate |
|---|---|
| All India, combined | 5.54% |
| Rural | 6.08% |
| Urban | 4.88% |
| Food (Consumer Food Price Index) | 7.74% |
| Restaurants and accommodation services | 9.36% |
| Transport | 5.01% |
| Education services | 3.94% |
| Clothing and footwear | 3.93% |
| Housing, water, electricity, gas and other fuels | 2.74% |
| Information and communication | 2.44% |
| Health | 1.40% |
The final figure for August 2026 was 4.83%. Among individual items, onion prices were 108.09% higher than a year earlier, while potato prices were 11.50% lower and tomato prices 8.62% lower.
What people earn
MoSPI describes the Periodic Labour Force Survey annual report for 2025 as the first comprehensive report based on the calendar year, January 2025 to December 2025. Its press note gives these average earnings:
| Type of work | Men, 2025 | Women, 2025 |
|---|---|---|
| Regular wage or salaried employment | ₹24,217 | ₹18,353 |
| Self-employment | ₹17,914 | ₹6,374 |
| Casual labour, other than public works | ₹455 | ₹315 |
Regular wage earnings rose about 5.8% for men and about 7.2% for women from 2024. MoSPI cautions that the annual estimates for 2025 may not be strictly comparable with those in previous annual reports, because the survey design was revised from January 2025. The press note does not restate the reference period for each figure, so see the full report before comparing the casual labour line with the other two.
The salary floor for foreign hires
If you are moving on an Employment visa, the Bureau of Immigration says a foreigner employed in any sector should draw a gross salary in excess of Rs. 16.25 lakhs per annum. A lakh is one hundred thousand rupees.
Income tax on a salary
The Income Tax Department's page for salaried individuals for assessment year 2026-27 gives these rates under the new tax regime, which is the default:
| Income slab | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% |
| ₹12,00,001 to ₹16,00,000 | 15% |
| ₹16,00,001 to ₹20,00,000 | 20% |
| ₹20,00,001 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
- Rebate: resident individuals are eligible for a rebate of up to ₹60,000 under the new regime where taxable income does not exceed 12,00,000.
- Cess: a health and education cess of 4% is paid on the income tax plus any surcharge.
- Surcharge: none up to Rs. 50 lakhs of income, then 10% from Rs. 50 lakhs to Rs. 1 crore.
- Residence: under one of the department's tests, an individual is resident in India for a year if they are in India for 182 days or more during it.
How to use these numbers
- Pick your state and whether you will live in a city. Take the MPCE figure from the table.
- Multiply by the people in your household.
- Bring it forward. The survey ended in July 2024. Prices have risen since, at 5.54% in the year to September 2026.
- Set it against income after tax, using the slab table.
What this page does not cover
The survey measures what households in India spend on average, which is the pattern of residents' budgets. It is not a price list for an expatriate lifestyle. We have not included city rent levels, school fees or private healthcare prices, because we did not find them in an official source on the day of checking.
Frequently asked questions
What is the average cost of living in India per month?
The official measure is spending per person. Average monthly per capita consumption expenditure in 2023-24 was Rs. 4,122 in rural India and Rs. 6,996 in urban India, according to MoSPI's household survey.
Which Indian state has the highest cost of living?
Among the 18 major states in the survey, Telangana had the highest urban spending per person at Rs. 8,978 a month, followed by Haryana at Rs. 8,427 and Tamil Nadu at Rs. 8,165. Kerala had the highest rural figure at Rs. 6,611.
What is the inflation rate in India?
Year-on-year inflation based on the Consumer Price Index was 5.54% in September 2026, provisional, with 6.08% in rural areas and 4.88% in urban areas. Food inflation was 7.74%.
What is the average salary in India?
In the Periodic Labour Force Survey for 2025, average earnings in regular wage and salaried employment were ₹24,217 for men and ₹18,353 for women.
How much of an Indian household budget goes on food?
About 47% in rural India and about 40% in urban India in 2023-24.
How much of the budget goes on rent?
In urban India, rent accounted for 6.58% of average monthly per capita consumption expenditure in 2023-24. That is an average across all urban households in the survey.
How much income is tax-free in India?
Under the new tax regime for assessment year 2026-27, the rate is nil up to ₹4,00,000. Resident individuals also get a rebate of up to ₹60,000 where taxable income does not exceed 12,00,000.
Official sources
- Ministry of Statistics and Programme Implementation — Household Consumption Expenditure Survey 2023-24, press note (30 January 2025)
- MoSPI, National Statistics Office — Consumer Price Index on base 2024=100 for September 2026 (12 October 2026)
- MoSPI — Press note on the Periodic Labour Force Survey annual report, 2025
- Income Tax Department — Salaried individuals for AY 2026-27
- Income Tax Department — Non-resident individual for AY 2026-2027
- Bureau of Immigration — Work in India
All figures verified against the official documents above on 13 October 2026. Survey figures are averages, so individual households spend more or less. The September 2026 inflation figures are provisional. Information, not financial or tax advice.