During the year, household consumption expenditure has grown by 5.7%; the main consumption purposes: food, housing and transport

17.07.2013

Analysis of the Household Budget Survey data compiled by the Central Statistical Bureau of Latvia (CSB) show that, during the last two years, a moderate increase in the household consumption expenditure may be observed; nevertheless, consumption expenditure in 2012 was lower than in 2008.

Information acquired within the framework of the survey indicates that, in 2012, household consumption expenditure on average per capita pmonthly comprised LVL 198 – LVL 11 more, as compared to 2011.

Changes in household consumption expenditure
(as per cent over previous year)

In comparison with 2011, the rise in the consumption expenditure (at current prices) in 2012 constituted 5.7%; whereas consumer prices went up by 2.3%, resulting in the 3.3% increase in the consumption expenditure at constant prices.

Higher consumption expenditure was recorded in urban households; there it reached LVL 215 per capita monthly.

Household consumption expenditure in 2011 and 2012
(on average per capita monthly, LVL)

 

All households

Urban

Rural

2011

188

204

152

2012

198

215

163

In 2012, the highest rise in the consumption expenditure was observed in the households of self-employed (of 22%), while the lowest – in the retired people households (of 1.6%).

Consumption expenditure in 2011 and 2012 by household`s socio-economic status
(on average per capita monthly, LVL)

Data of the Household Budget Survey show that – the more children in household, the less it can afford to spend per capita. The most difficult situation is faced in households with three and more children – consumption expenditure in such households, calculating per capita monthly, equalled to LVL 113 and comprised only 57% of the average consumption expenditure level in the country.

Consumption expenditure by number of children in household
(on average per capita monthly, LVL)

In 2012, the highest consumption expenditure per capita monthly was recorded in the households located in Riga and Pierīga region - LVL 240 and LVL 203, respectively; while in other regions it did not reach the country average. The lowest consumption expenditure, in its turn, was observed in Latgale region - LVL 166 per capita monthly.

Regardless the rise in the consumption expenditure, the structure thereof has not changed significantly, and in 2012 the key consumption purposes, namely food, housing and transport, did not change.

Composition and structure of consumption expenditure
(on average per capita monthly)

All households

2012, LVL

2012, %

2012 over 2011, %

Consumption expenditure, total

198.16

100

105.7

Food and non-alcoholic beverages

55.50

28.0

102.8

Alcoholic beverages, tobacco

6.51

3.3

100.7

Clothing and footwear

10.18

5.1

99.0

Housing, water, electricity, gas and other fuels

33.30

16.8

106.7

Furnishings, household equipment and routine maintenance of the house

8.14

4.1

105.9

Health

11.77

5.9

103.3

Transport

27.94

14.1

120.5

Communications

9.26

4.7

101.0

Recreation and culture

13.21

6.7

104.8

Education

3.24

1.6

112.6

Hotels, cafes and Restaurants

8.94

4.5

109.4

Miscellaneous goods and services

10.15

5.1

96.9

In comparison with the previous year, mainly affected by the personal transport, the highest growth was recorded in the expenditure on transport – of 20.5%. Households have resumed purchasing personal motor vehicles as well as have not saved on the exploitation thereof.

In 2012, households have bore comparatively high burden of housing and utility payments; expenditure on it has increased by 6.7%. Rise in the housing costs mainly is related to the increase in heat and gas prices as well as rent. Moreover, data of the EU Statistics on Income and Living Conditions (EU-SILC) survey show that, in 2012, the share of households admitting that such costs are a heavy burden accounted for 44%.

Expenditure on food still takes the greatest part – on average it constitutes 28% of the total household consumption expenditure (29% in 2011). The share of these costs in the consumption expenditure has diminished slightly. If compared to the previous year, household expenditure on food has grown rather insignificantly – from LVL 54 to LVL 55 on average per capita monthly.

The main costs, such as expenditure on food, housing, transport, purchase of clothing and footwear, and health, on average in all households constituted more than two thirds (70%) of the total consumption expenditure. Respectively – most of the costs still are paid to fulfil the daily needs.

In 2012, Household Budget Survey engaged 3791 households within the whole Latvia.

More information on the results of the Household Budget Survey 2012 will be available in the CSB databases starting from 28 August 2013.

 

More information:
Living Standard’s Statistics Section
Lidija Spārīte
Tel.  67366998