Source: The World Bank.
Share of Consumption by Sector and Income, Developing
As the income level increases, so does the diversity of
consumption. Consumption patterns in developing economies reveal
that while food is the most important expense at lower income
levels, its share drops significantly as income levels increase.
At higher income levels, transportation becomes the second most
important expense, closely behind food. An important factor in
the growing share of transport expense at higher income levels
is that higher incomes are associated with formal and regular
forms of employment where mobility for commuting is important.
It is also more likely that higher income levels are associated
with automobile ownership.