Analytics

Considering a 0.2% increase of the consumer prices, consumption expenditure in constant prices rose by 5.2%.

In 2015, the highest consumption expenditure - on average EUR 388 per household member monthly - was recorded in Riga households – 2.9% or EUR 11 more than in 2014. Last year, household consumption expenditure in urban areas grew by 6.1% or EUR 20 and reached on average EUR 343 per household member monthly. In rural areas, in turn, household consumption expenditure went up by 3.6% or EUR 9 and reached on average EUR 259 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 % age points and unemployment rate fell by 0.9% age points, respectively. Also household savings are growing. Data of the Financial and Capital Market Commission show that, compared to December 31, 2014, on December 31, 2015, household deposits in Latvian banks have grown by 6.4% or EUR 323 million,” the statistics office said

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 (69% in 2014). 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 EUR 82 in 2014 to EUR 84 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 %).

Nevertheless in 2015 household consumption expenditure at current prices was EUR 14 lower than in 2008, household expenditure on housing and dwelling maintenance, as well as health exceeded the pre-crisis level by EUR 10 and EUR 4, 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 (EUR 380) and of wage and salary earners (EUR 328), whereas in pensioner households consumption expenditure was notably lower – EUR 255 per household member monthly