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Objectives :One of the household's economic welfare indices is their quality of consumption commodities mixture during a given period. In Economics, the commodities are classified luxuries , necessities and inferiors by income elasticities of demand . When most of commodities in households'consumption basket are necessities and inferiors , the conditions of household's consumption are improved and its welfare is increased . In this article , we want to find "Are the consumption mixtures of urban households improved or disimproved during 1368-87 to 1351-67?" Methods : The used models of Engel curves are estimated by panel data during two periods .Then, income elasticities of demand of commodities are calculated. Findings : During 1351-67 , Cereals products , Oil Fats , Tobacco products and Clothing and footwear were inferiors and the other commodities were necessities in urban households'baskets .But during 1368-87, Medical Care and Health Services , Transport and Communications ,Recreation, Entertainment and Cultural Services were luxuries and other commodities were necessities . Results : Since during 1368-87 some of the food commodities changed from inferiors into necessities and some non-food commodities have been changed into luxuries , thus we take a result that consumed condition and economic welfare of Iranian urban households have been worse during 1368-87 to1351-6

Keywords: Engel Curves - Income elasticities of demand – Iranian urban

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