Household consumption expenditure has grown by 5.4 %

28.07.2016

Latest data of the Central Statistical Bureau (CSB) show that in 2015 household consumption expenditure comprised on average 316 euros per household member monthly – 16 euros or 5.4 % more than in 2014. Considering 0.2 % increase of the consumer prices, consumption expenditure at constant prices rose by 5.2 %.

Household consumption expenditure dynamics in 2008–2015
(on average per household member monthly, euros)

In 2015, the highest consumption expenditure (on average 388 euros per household member monthly) was recorded in Riga households – 2.9 % or 11 euros more than in 2014. Last year, household consumption expenditure in urban areas grew by 6.1 % or 20 euros and reached on average 343 euros per household member monthly. In rural areas, in turn, household consumption expenditure went up by 3.6 % or 9 euros and reached on average 259 euros per household member monthly.

The increase in the consumption expenditure was due to the rise in household disposable income: in 2015, net wages and salaries grew by 7.6 %, employment rate rose by 1.7 percentage points and unemployment rate fell by 0.9 percentage points, respectively. Also household saving are growing. Data of the Financial and Capital Market Commission (FCMC)1 show that, compared to 31 December 2014, on 31 December 2015 household investments in Latvian banks have grown by 6.4 % or 323 million euros.

Consumption is still dominated by the main costs, such as expenditure on food, housing, transport, clothing and footwear, as well as health. The share thereof accounted for more than two thirds (68 %) of the total consumption expenditure (in 2014 – 69 %). The highest amounts were spent on food – 26.5 % of the total consumption expenditure. Expenditure on food on average per household member monthly grew from 82 euros in 2014 to 84 euros in 2015.

The sharpest rise was recorded in expenditure on various goods and services (by 14.3 %), of which mainly on appliances and articles for personal care, as well as hairdressing salons and personal grooming establishment services. Followed by restaurant and hotel services with an increase of 10.7 %, mainly catering services.

Increase was recorded also in expenditure on alcohol and tobacco (10.4 %), clothing and footwear (9.9 %), communication (8.4 %), furnishings and housing appliances (7.9 %), transport (7.4 %), health (6.6 %), recreation and culture (5.4 %), housing and dwelling maintenance (2.4 %).

 

Consumption expenditure composition, structure and changes in 2015

All households

Consumption expenditure* in 2015, euros

Expenditure structure

in 2015

%

Changes

in 2015,

compared to

2014

 %

Changes in 2015,

compared to 2014, euros

CPI changes in 2015,

 compared to

2014

 %

Consumption expenditure, total

315.78

100

5.4

16.29

0.2

Food and non-alcoholic beverages

83.81

26.5

1.7

1.41

-1.3

Housing, water, electricity, gas and other fuels

49.39

15.6

2.4

1.14

3.5

Transport

41.49

13.1

7.4

2.88

-4.7

Recreation and culture

24.89

7.9

5.4

1.28

0.6

Health

20.16

6.4

6.6

1.26

1.4

Clothing and footwear

19.17

6.1

9.9

1.72

-0.5

Miscellaneous goods and services

17.98

5.7

14.3

2.25

1.4

Hotels, cafes and Restaurants

15.53

4.9

10.7

1.50

3.0

Furnishings, household equipment and routine maintenance of the house

14.90

4.7

7.9

1.09

1.0

Communication

13.87

4.4

8.4

1.08

0.8

Alcoholic beverages, tobacco

10.47

3.3

10.4

0.98

1.8

Education

4.12

1.3

-6.7

-0.30

1.5

* On average per household member monthly

Nevertheless in 2015 household consumption expenditure at current prices was 14 euros lower than in 2008, household expenditure on housing and dwelling maintenance, as well as health exceeded the pre-crisis level by 10 and 4 euros, respectively. The rise was due the sharp increase in the consumer prices for dwelling maintenance services – of 27%, and health – of 20%, compared to 2008.

Compared to 2014, in 2015 the most notable increase in the household expenditure was observed in households of self-employed – of 9.8%, whereas in households of wage and salary earners and pensioner households it constituted 5.3 % and 2.7 %, respectively. The highest consumption expenditure was recorded in households of self-employed (380 euros) and of wage and salary earners (328), whereas in pensioner households consumption expenditure was notably lower – 255 per household member monthly. 

Consumption expenditure by socio-economic group
(on average per household member monthly, euros)

Data of the Household Budget Survey show that – the more children in household, the less it can afford to spend per single person. Consumption expenditure in households with three and more children on average comprised 192 euros per household member monthly, constituting only 61 % of the average national level of consumption expenditure. Households with one child spent on average 294 euros per household member, while households with two children – 280 euros. The highest consumption expenditure was recorded in households with no dependent children. In 2015, consumption expenditure thereof on average accounted for 346 euros per household member monthly.

Consumption expenditure by number of children in household
(on average per household member monthly, euros)

 

Richest households (belonging to the 5th quintile group) generally were able to spend 349 euros (per household member monthly) on food, housing, transport, clothing and footwear, and health, while poorest households (of the 1st quintile group) – 123 euros. Compared to poorest households, richest households spent 6.4 times more resources on recreation and culture.

Consumption expenditure by quintile group; 2015
(on average per household member monthly, euros)

 

In 2015, Household Budget Survey engaged 3 844 households within the whole Latvia.
More information on the results of the Household Budget Survey 2015 will be available in the CSB database section Household Budget starting from the 26 August 2016.

1Bank performance in Latvia 2015: year of steady progress FCMC Available at: http://www.fktk.lv/en/publications/press-releases/5601-bank-performance-in-latvia-2015-year-of-steady-progress.html
2 Quintile groups are formed by arranging all households in ascending sequence by disposable income per one household member and dividing them afterwards in five equal groups.

 

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Beate Danusēviča
Information and Communication Section
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More information on data:
Lidija Spārīte
Living Standard’s Statistics Section
E-mail Lidija [dot] Sparite [at] csb [dot] gov [dot] lv
Phone +371 67366998