Low-income people spend 42% of their disposable income on food… Inflation impact [체크리포트]

Food expenses of 350,000 won out of 840,000 won in monthly average disposable income for the bottom 20%
More than three times the top 20%, much higher than the average for all households
Analysis that the real purchasing power of the low-income class is constrained by inflation

From January to March of this year, low-income households spent more than 40% of their disposable income on food. This is more than three times that of the top 20% of income earners, meaning that high prices will inevitably impose a greater burden on the low-income class.

According to the National Statistical Portal of the Ministry of Strategy and Finance and the National Statistical Office on the 7th, 42.2% of the average monthly disposable income (84,7039 won) in the first decile, which is the bottom 20% of income, was spent on food and dining out (357,754 won), as of the first quarter of this year. was counted

Among them, spending on food and non-alcoholic beverages at home was 25,1783 won, and eating out was 105,971 won. In the case of the low-income class, nearly half of their disposable income after deducting essential expenses such as taxes out of their total income was spent on food. This is more than three times higher than the average food expenditure share (13.2%) of the top 20% of income quintiles (13.2%), and even higher than the average of all households (18.3%).

In fact, the consumer price index for food and non-alcoholic beverages in the first quarter of this year was 109.32 (2020 = 100), up 4.1% from the same period last year. Food and lodging service prices also rose by 6.0%, of which food service (6.1%) rose more sharply than accommodation service (3.1%).

This upward trend in consumer price inflation is getting worse in the second quarter. Food prices rose 7.4%, the largest jump since March 1998 (7.6%) in 24 years and 2 months. Processed food, a price item for dining tables, also rose 7.6%, and livestock products also rose 12.1%, led by pork (20.7%), imported beef (27.9%), and chicken (16.1%).

By Kim Chae-young, staff reporter [e-mail]