The assessment is based on new statistics which show a drop in the "Engel's coefficient."

The Engel's coefficient, which indicates the share of income spent on food, is the standard used by the United Nations Food and Agriculture Organization. A lower figure reflects a higher standard of living.

In Beijing, the Engel's coefficient for 2002 has fallen to 33.8 percent, a decrease of 2.4 percent over the same period in 2001. It is the lowest of the nation's three major cities.

Shanghai and Guangzhou recorded coefficients of 39 percent and 38.1 percent respectively.

The figure in developed Western countries is usually about 20.

Beijingers can also look forward to a more affluent life in three to four years' time with the Engel's coefficient expected to drop below 30 percent, said Cui Shuqiang, director of the Statistics Bureau of Beijing, in China Consume Journal.

With the Engel's coefficient presently standing at 33.8 percent, local people's spending on culture and entertainment has grown rapidly while spending on food keeps falling.

"Beijing residents' consumption patterns have been upgraded," said Cui. "They are turning towards high-grade products in their consumption."

Spending money on health, education, housing and automobiles has become their new consumption mode and pursuit.

Per capita expenditure in the first 11 months of 2002 reached 9,456 yuan (US$1,149), up 14.8 percent on the previous year. The three fastest growth items were: transportation and communications, up 46 percent; housing, up 43.4 percent; and health care, up 40.7 percent.

(China Daily February 6, 2003)