Korean households' spending on food jumps in H1

SEOUL, Sept. 8 (Yonhap) -- South Korean households' spending on food products jumped in the first half of the year amid rising grocery prices, data compiled by the central bank showed Tuesday.

The so-called Engel's coefficient reached 12.5 percent in the first six months of
the year, the highest level since 12.7 percent seen in the first half in 2001,
according to the Bank of Korea.
Engel's coefficient measures the percentage of a household's expenditure on food
to its total spending. Generally, if income falls, the proportion of spending on
food increases, making Engel's coefficient rise.
The bank said the rise in household spending on groceries was attributable to
rising food prices.
According to the central bank, South Korean households' total spending stood at
269.7 trillion won (US$218.7 billion) in the first half, up 2 percent from a year
earlier. Their expenditure on food products increased 9.1 percent on-year to 33.7
trillion won, it added.
The data came as the South Korean economy, Asia's fourth-largest, has yet to show
marked signs of a rebound from its recent slump.
In the second quarter, the country's gross domestic product expanded 2.6 percent
from three months earlier, but contracted 2.2 percent from the same period a year
earlier.
sooyeon@yna.co.kr
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