Statistical Office, average monthly food expenditure of 420,000 won for the bottom 20% of income earners in the third quarter of this year
The ratio of food expenses to disposable income is 47.5%
The lower the income, the higher the share of food, housing, water, and energy expenditures
In the third quarter, households in the bottom 20% of incomes spent half of their disposable income on food. As electricity rates are expected to rise, the burden on the common people is expected to increase as high prices are hit directly.
According to a household trend survey released by the National Statistical Office on the 21st, the average monthly amount spent on food by the bottom 20% in the third quarter of this year was 429,000 won. Grocery and non-alcoholic beverage expenditures were 279,000 won, dining out and other expenses were 149,000 won, and the ratio of food expenses to disposable income (902,000 won) was 47.5%.
The ratio of food expenses (1.28 million won) to disposable income (8.071 million won) of the fifth quintile, the top 20% of the income bracket, was 15.9%. The 4th quintile accounted for 20.8%, the 3rd quintile 23.5%, and the 2nd quintile 26.5%.
In the third quarter of last year, the price of food and non-alcoholic beverages rose 7.9% from a year ago, exceeding the overall consumer price inflation rate (5.9%). Food service prices such as eating out rose 8.7%, the highest level in 30 years since the third quarter of 1992 (8.8%). Compared to the same period last year (413,000 won), the first quintile increased by 3.7%.
As high prices are expected to continue for the time being, the burden on the common people is expected to increase. While the price of processed foods such as ramen continues to rise, there are concerns about ‘milkflation’ in which dairy products and bread and ice cream that use them as ingredients are also rising due to the recent decision to raise the price of raw milk.
Due to rising energy prices around the world and KEPCO’s deficit, the government is said to be considering raising electricity rates next year. Looking at the ratio of housing, water, and energy expenditure to disposable income in the third quarter, the 1st quintile was 21.9%, the 2nd quintile was 11.9%, the 3rd quintile was 7.8%, the 4th quintile was 6.6%, and the 5th quintile was 3.8%. Housing, water, and light/heat refers to housing-related expenses such as housing rental costs, fuel costs, and housing maintenance costs.
Reporter Kim Chae-young [email protected]