Household Monthly Spending of 2.64 Million Won Last Year... Highest in 12 Years

[Asia Economy Sejong=Reporter Dongwoo Lee] Last year, consumer prices surged significantly, leading to the highest average monthly household consumption expenditure in 12 years. This was influenced by a substantial increase in spending related to external and face-to-face activities such as food and lodging, entertainment, and culture, as daily life recovery gained momentum.

According to the 2022 Annual Household Expenditure Survey results released by Statistics Korea on the 23rd, the average monthly consumption expenditure per household last year was 2.64 million KRW, up 5.8% from the previous year. This is the highest increase in 12 years since the 6.3% rise in 2010.

On the 17th, when dairy companies simultaneously raised milk prices, dairy products were displayed at a large supermarket in Seoul. Photo by Jinhyung Kang aymsdream@

By major categories, expenditures increased in most areas including food and lodging (17.5%), transportation (10.2%), entertainment and culture (18.4%), and education (12.2%), while spending on household goods and domestic services (-9.8%) and food and non-alcoholic beverages (-1.9%) decreased.

The sharp rise in inflation last year was the main cause of the expenditure increase. The annual consumer price inflation rate last year was 5.1%. Considering consumer price increases, real consumption expenditure rose by 0.7%.

During the COVID-19 outbreak in 2020, spending in face-to-face sectors sharply declined, whereas last year, spending centered on face-to-face sectors expanded significantly. A Statistics Korea official analyzed, "As daily life recovery became full-scale, the increase in face-to-face sectors led to a higher growth rate in consumption expenditure."

The average monthly expenditure on food and non-alcoholic beverages was 390,000 KRW, down 1.9% from the previous year. Spending on major food items such as grains, meat, eggs, and fruits decreased. Expenditures declined in most categories including grains (-16.3%), vegetables and vegetable products (-5.2%), meat (-3.1%), and fresh seafood (-7.4%).

Spending on alcoholic beverages and tobacco was 39,000 KRW, up 0.1% from the previous year, and clothing and footwear expenditure was 136,000 KRW, increasing by 8.3%. Housing, water, and utilities expenditure was 302,000 KRW, up 1.4% from the previous year. Although spending on housing maintenance and repairs decreased by 30.4%, expenditures on fuel (9.0%) and actual housing costs such as monthly rent (4.5%) increased.

Expenditure on household goods and domestic services was 117,000 KRW, down 9.8%, while health expenditure rose 2.4% to 232,000 KRW. Spending on inpatient services decreased by 8.9%, whereas expenditures on pharmaceuticals (4.5%) and outpatient medical services (4.7%) increased.

Food and lodging expenditure was 397,000 KRW, up 17.5% from the previous year. Meal expenses such as dining out increased by 16.6%, which is 11.6 percentage points higher than the previous year's 5.0%, and lodging expenses including hotels and condos also rose by 40.3%. Entertainment and culture spending increased by 18.4% to 169,000 KRW compared to a year ago. In particular, group travel expenses surged by 258.7%, and spending on sports and recreational services (36.1%) and cultural services (5.8%) also increased.

Education expenditure was 204,000 KRW, up 12.2% from the previous year. Spending on academies and supplementary education for students and adults increased by 15.5%. Transportation expenditure was 316,000 KRW, up 10.2% from the previous year. While automobile purchases decreased by 3.3%, spending on transportation fuel rose by 18.8% due to the rise in international oil prices, and other transportation costs such as airfares increased by 34.5%.

This content was produced with the assistance of AI translation services.