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PPPs for policy making: a visual guide to using data from the ICP - Chapter 5: Food and nutrition

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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).                                       

Data from the ICP can also reveal the change in consumption of more disaggregated food groups, such as rice and poultry, as incomes rise. These data have assisted studies of demand-led production and market potential as countries move from low-income to lower-middle-income status, and have the potential to inform jobs transformation, infrastructure, and agricultural investment policies.