Always consumption is a function of income, but some other factors also contribute to consumption. `Engel's law’ states that as income increases the share of expenditure on food in total household expenditure tends to decrease. With comparing to the income share it decreases means the rise in income or food price will not affect the consumption. This paper is an attempt to analyze the consumption expenditure pattern of households with stable income and the determinants of consumption expenditure which influence the consumer's budget in Kerala. Consumption also depends on living conditions that force them to spend more than their income. With increase in income, expense on non-food items increases means higher income groups neither compromise price increase nor without buying.
Stable income, Income slab, Vertical comparison, Absolute consumption
