The reason for the change in the number of Engel residents in China

caused by soaring prices.

The Engel coefficient decreases, indicating that people are getting richer. Engel's coefficient refers to the proportion of food consumption in total personal consumption, and the higher it is, the more you spend to eat your stomach. An Engel coefficient greater than 60% indicates poverty; 50%-60% for food and clothing; 40%-50% are well-off; 30%-40% are relatively wealthy; 20%-30% are wealthy; Less than 20% are extremely wealthy.

Check it out for yourself to see what stage your family is in.

1. Engel's coefficient (ENGEL'scoefficient) is the proportion of total food expenditure to total personal consumption expenditure. In the 19th century, the German statistician Engel drew a law on the changes in consumption structure based on statistical data

The less income a household has, the greater the proportion of household income (or total expenditure) spent on food

Two: As household income increases, the proportion of household income (or total expenditure) spent on food decreases. By extension, the poorer a country is, the greater the proportion of food spent on food per citizen's average income (or average expenditure), and this proportion tends to decline as the country becomes richer.

3. Engel's law mainly expresses a certain trend in the proportion of food expenditure in total consumption expenditure with changes in income. The correlation between household income and food expenditure is revealed, and the proportion of food expenditure to total consumption expenditure is used to illustrate the impact of economic development and income increase on living consumption.

Four: As we all know, food is the first need for human survival, and when the income level is low, it must occupy an important position in consumer expenditure. With the increase of income, when the demand for food is basically satisfied, the focus of consumption will begin to shift to other aspects such as clothing and use.

Therefore, the greater Engel's coefficient, the poorer a country or family lives; Conversely, the smaller the Engel coefficient, the richer life becomes.

5. Engel's law is based on empirical data, and it is applied on the premise that all other variables are constants, so when examining the change in the proportion of food expenditure in income, the impact of factors such as urbanization, food processing, catering industry and changes in the structure of food itself on the increase in household food expenditure should also be considered. It is only when a fairly high average level of food consumption is reached that a further increase in income does not have a significant impact on food expenditure.

The meaning of Engel's coefficient, the higher the Engel's coefficient, the lower the people's standard of living

Engel's coefficient (ENGEL'In the 19th century, the German statistician Engel drew a law on the changes in the consumption structure according to statistical data: the less a family income, the greater the proportion of household income (or total expenditure) spent on food, and as the family income increases, the proportion of household income (or total expenditure) spent on food will decline By extension, the poorer a country is, The greater the proportion of each citizen's average income (or average expenditure) spent on food, and this proportion tends to decline as the country becomes richer, so it is generally believed that the higher the Engel coefficient, the lower the standard of living

Further information: 1. Consumer price index, also known as consumer consumption index, referred to as CPI.

It is a relative number that reflects the trend and degree of changes in consumer goods and services purchased by urban and rural residents in a certain period of time, and is the result of comprehensive summary calculation of the consumption index of urban residents and the consumption index of rural residents. Through this index, we can observe and analyze the impact of changes in retail sales of consumer goods and service items on the actual living expenses of urban and rural residents.

2. It is a macroeconomic indicator that reflects the changes in the level of consumer goods and services generally purchased by households. It is a relative number that measures the change of the level of a group of representative consumer goods and services over time in a specific period of time, and is used to reflect the change in the level of consumer goods and services purchased by households, and is the coefficient of change in the retail price of goods and services in a month.

3. The statistical survey of household consumption is the ultimate survey of social products and services, which is closely related to the lives of the people on the one hand, and also has an important position in the entire national economic system. It is an important indicator for economic analysis and decision-making, monitoring and regulation of the overall level, and national economic accounting. The rate of change reflects to some extent the degree of inflation or deflation.

Generally speaking, inflation is considered to have occurred when prices are comprehensive, varied, and continuous.

In the special period of the financial crisis, consumption vouchers are gradually becoming one of the important means of selling and maintaining growth. Although consumption vouchers are intended to promote consumption, they can also be used as a social assistance tool. There are also mixtures of the two, with the goal of revitalizing consumption, and the implementation method is similar to that of social assistance.

The context in which hybrid policies are shaped is likely to be complex, rather than just economic considerations.

From the analysis, it can be seen that

The higher the Engel coefficient, the lower the standard of living of the people

Therefore, it is wrong to say that "the higher the Engel coefficient, the higher the standard of living of the person".

So the answer is:

The Engel coefficient of urban and rural residents in China shows a downward trend, indicating that the consumption structure of urban and rural residents in China has been improved, and the consumption level and consumption quality have been continuously improved.

The Engel coefficient of rural households is higher than that of urban households, indicating that the living standards of peasants are lower than those of urban residents.

Engel's coefficient refers to the proportion of income spent on food by a population to a total income.

The lower it is, the better the standard of living.

The decline indicates that the living standards of urban and rural residents have improved.

It shows that the consumption structure of urban and rural residents is more reasonable, and the living standard has improved.

Effect? Obviously. Go to the market and look at the price of vegetables, and then go home and look at the salary.

According to the data of the National Bureau of Statistics, since the reform and opening up, due to the sustained and rapid growth of income, the Engel coefficient of Chinese households has shown a downward trend, compared with 1978, in 2004, the Engel coefficient of urban households in China decreased by one percentage point; The Engel coefficient of rural households decreased by one percentage point. Especially in recent years, the decline of Engel's coefficient has accelerated significantly.

It can be seen from Table 1 that during the 15 years from 1985 to 1999, China's rural residents have been at the level of food and clothing; Since 2000, the Engel coefficient of rural households in China has been below 50 percent, basically fluctuating around 47 percent, reaching a moderately prosperous life. After 2000, the Engel coefficient of urban households in China basically fluctuated around 37 percent, reaching affluence.

At the same time, a problem that cannot be ignored has emerged: the gap between urban and rural areas is too large, and the Engel coefficient has basically differed by about 10 percentage points since 1993. In 2004, the per capita net income of rural residents nationwide was 2,936 yuan, the fastest growth since 1997 after deducting the price factor. The per capita disposable income of urban residents is 9,422 yuan, and the per capita income of urban residents is twice that of rural residents.

According to the communiqué data, in 2007, the proportion of household food consumption expenditure in total household consumption expenditure, that is, Engel's coefficient, has increased unusually compared with 2006. In 2007, the Engel coefficient of rural households was up by one percentage point over 2006. The Engel coefficient of urban households is one percentage point higher than that of 2006, and it has not yet come out in '08.

Low.

The larger the Engel coefficient, the lower the standard of living and the imperfect consumption structure of the country.

Mistake. Engel's coefficient is the share of total food expenditure to total personal consumption expenditure. It reflects the share of food expenditure in personal consumption expenditure, and the wealthier the household, the lower the share of food expenditure.

The higher the Engel coefficient, the greater the proportion of people's food consumption expenditure in total consumption expenditure.

All else being equal, a higher Engel coefficient indicates a lower income as a household and a poorer country as a country.

So on the contrary, the higher the Engel coefficient, the lower the standard of living of the people.

Right. The smaller the Engel coefficient, the higher the standard of living.

Relationship between income and consumption:

Income is the basis and premise of consumption. All else being equal, the more disposable income people have, the greater their consumption of various goods and services. During the period of rapid income growth, consumption growth was also relatively fast; When the rate of income growth declines, so does the growth rate of consumption.

In order to improve the living standards of the residents, it is necessary to maintain steady economic growth and increase the income of the residents.

The level of household consumption is also affected by future income expectations. If the expected income is high, the level of consumption may be high; Otherwise, people will moderate their current consumption. The level of overall consumption in society is closely related to the size of people's income gap.

If people's income disparity is too large, the overall consumption level will decrease; Conversely, a narrowing of income disparities will raise the overall level of consumption.

Household income is the main factor influencing consumption:

Income is the basis and premise of consumption.

1. Other things being equal, the more disposable income (current income) people have, the greater their consumption of various goods and services. Therefore, in order to improve the living standards of residents, it is necessary to maintain stable economic growth and increase residents' income.

2. In general, the higher the expected future income (future income), the greater the likelihood of expected spending.

3. The social income gap is closely related to the overall consumption level of the society. If people's income disparity is too large, the overall consumption level will decrease; Conversely, a narrowing of income disparities will raise the overall level of consumption.

Engel's coefficient is the share of total food expenditure to total personal consumption expenditure.

Under the condition that the total expenditure amount remains constant, the larger the Engel coefficient, the more money is spent on food. The smaller the Engel coefficient, the smaller the amount spent on food, which is proportional to the two. Conversely, when the amount of food expenditure remains constant, the total amount of expenditure is inversely proportional to Engel's coefficient. Therefore, Engel's coefficient is one of the main measures of how rich a family or a country is.

In general, all other things being equal, a higher Engel coefficient indicates a lower income as a household and a poorer country as a country. Conversely, a lower Engel coefficient indicates a higher income as a household and a richer country as a country.