The pie chart illustrates how monthly household expenditure is distributed in a particular city.
Overall, rent accounts for the largest proportion of household spending, while the smallest amount is spent on other expenses. Food and transportation also make up significant shares of the budget.
In detail, rent represents 35% of total monthly expenditure, which is more than one-third of the overall budget. Food is the second largest category at 25%, making it 10 percentage points lower than rent. Transportation takes up 15% of spending, which is considerably less than food but still a notable proportion.
Savings and entertainment each account for 10% of household expenditure. Together, these two categories make up one-fifth of the total budget. Finally, only 5% is allocated to other expenses, making it the least significant category on the chart.
It can be seen that essential costs such as rent, food and transportation comprise 75% of total spending. This suggest that most households spend the majority of their income on basic needs rather than leisure activities or savings.