Culture and education expenditure by urban residents increased by 33.4 percent from 2002 to 2006, while their health expenditure rose by 57.4 percent.

In rural areas, the aggregate proportion of expenditure on transport and communications, culture, entertainment, education and health combined increased by 3.6 percentage points, the report said.

Reduced expenditure on food is reflected by the declining Engel coefficient, or proportion of expenditure on food to total consumption, an international measurement of living standards.

In 2002, the coefficient in urban areas was 37.7 percent. In 2006, it dropped by 1.9 percent, indicating the improved structure of urban consumption.

The rural Engel coefficient was 43 percent in 2006, 3.2 percentage points lower than in 2002, the report said.

Another sign of changing consumer habits is that the proportion of expenditure on services has been on the rise, the report said.

From 2002 to 2006, urban residents spent 47.9 percent more on services, while the proportion of services expenditure to overall consumption rose by 0.7 percentage points.

Farmers spent 64 percent more on services from 2002 to 2006 and the proportion of their services expenditure to overall consumption rose by 1.8 percentage points, the report said.

The improved consumer environment has given residents more access to quality products and services, the report said.

In terms of consumption structure, urban residents are consuming less grains dining out more frequently.

Rural residents, meanwhile, are consuming less grains, vegetables, edible oils and sugar while their demand for meat, eggs, milk and aquatic products has risen rapidly, the report said.

The change in the structure of food consumption indicates living standards are improving in rural areas, the NBS said.