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💹 | With an annual household income of 1000 million yen, "I'm not luxurious, but my food expenses don't decrease. I respect a household of about 5 yen a month ...

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With an annual household income of 1000 million yen, "I'm not luxurious, but my food expenses don't decrease. I respect a household of about 5 yen a month ...

If you write the contents roughly
I think that this is a little difficult to understand, so I would like you to identify the monthly consumption expenditure, calculate the Engel coefficient, and use it as a guide for food expenses.

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Engel coefficient

Engel coefficient(Engel's coefficient,English: Engel's coefficient,German: Engelsches Gesetz) is for each householdHouseholdPercentage of food and drink expenses inpercentUnit)[1][2].

Germany OfSocial statisticianErnst Engel 1857/ OfpaperAnnounced in[1].


"The higher the value of Engel's coefficient, the higher.Standard of livingIs low. This is because food costs (food, water, etc.) are difficult to save extremely (compared to luxury items) due to life support.Engel's LawThat is.As the standard of living improves with economic growth, the Engel coefficient decreases with economic growth.[1][2]

Discussion of usefulness

The high and low Engel's coefficient is an indicator of living standards, but it may not be suitable for comparing social groups with different numbers of people per household, ratio of working age to population, price system, and living customs.[2].

EconomistYasuyuki IidaIn Japan, the poorest 20% account for about 25% of spending, and the richest 20% account for about 22%.[3].

Gifu UniversityThe professor said that the Engel coefficient is rising due to complicated factors such as aging, exchange fluctuations, and changes in food culture, so it does not mean that it will rise, that is, poverty, but about the harshness of life for low-income earners. It is said to be useful as an index of[4].

Koichi Haji of the Nisseikiso Research Institute states that the increase in double-income households increases household income, so the increase in food expenses due to ready-to-eat meals does not significantly affect the increase in Engel's coefficient.In Japan, the Engel coefficient of society as a whole often rises if the tax and public dues on food are increased uniformly and the tax and public dues on other necessities of life and services are not increased. In April 2014consumption taxThe tax was increased from 5% to 8%, but while the tax on food was increased, the Engel coefficient increased relatively because tax-exempt items such as medical expenses, tuition, and rent are included in consumption expenditure. He also states that the increase in unemployed households due to aging has had a major impact on the long-term rise in Engel's coefficient.[5].

Japanese statistics

Second World WarPreviously, Engel's coefficient was in the 3% range for urban workers, but increased to around 6% after the defeat.[6].

Ratio of food expenses to consumption expenditure
年度Total householdHouseholds of two or moreSingle household

It has been on the rise since 2011, and 2016 was the highest number since the bubble.[7]

Ratio of food expenses to consumption expenditure (by region)[8]

World statistics

Food expensesetc.
United Kingdom24.9%
South Korea32.9%
  • From Statistics Bureau, Ministry of Internal Affairs and Communications "World Statistics 2008" "13-Supplement 2 Household Income"


  1. ^ a b c "Engel's Law" "Encyclopedia of Britannica Small Items" Britannica Japan.
  2. ^ a b c "Engel's coefficient" "Encyclopedia Nipponica" Shogakukan.
  3. ^ Is the reduced tax rate effective for poverty alleviation? / Yasuyuki Iida x Chiki Ogiue SYNODOS-November 2015, 11 Viewed March 11, 2021
  4. ^ Engel's coefficient, high level for the first time in 29 years Is it affected by changes in eating habits? Asahi Shimbun Digital March 2017, 3 Retrieved March 30, 2021
  5. ^ Basic Research Report Considering the increase in Engel's coefficient Nisseikiso Research Institute May 2017 Retrieved March 5, 2021 (PDF)
  6. ^ Junnosuke Sasaki et al. "Introduction to Japanese History" Yoshikawa Kobunkan 2000 p.264
  7. ^ Source: Ministry of Internal Affairs and Communications
  8. ^ Statistical index following the Meiji era: Engel's coefficient Ministry of Internal Affairs and Communications Statistics Bureau

Related item

Consumption expenditure


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