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Food consumption
ICP data can also be used to investigate how the share of actual individual consumption expenditure spent on food differs with increasing consumption or income per capita, illustrating Engel’s Law which states that as incomes rise, the proportion of income spent on food decreases (figure 5.4). ICP data can also be used to examine the expenditure share of different food groups within a total “food basket” by region and country (figure 5.5).
Uses and limitations of Purchasing Power Parities
Chapter 1: The size of the economy and price levels
Chapter 2: Poverty and inequality
Chapter 3: Trade and competitiveness
Chapter 4: Labor costs, wages, and social safety nets
Chapter 5: Food and nutrition
Chapter 6: Health
Chapter 7: Education
Chapter 8: Energy and climate
Chapter 9: Infrastructure
Chapter 10: Human Development
Chapter 11: Administrative uses
Technical note