Estonia: higher cost of food has not affected share on expenses on food
12:22, 4. aprill 2008
TALLINN, Apr 04, - The hike in food prices did not affect the share of expenses on food in households' expenses in 2007, Statistics Estonia has found.
Similar to the previous year one fourth of the expenses was spent on food and non-alcoholic beverages, Statistics Estonia said.
In 2007 the average expenses per member of household totaled 4,358 kroons (EUR 278), 17 percent more than the year before. Compared with the year before expenses on food increased by 16 percent, mainly because of higher grocery prices.
The share of expenses on food in the structure of expenses made by household members did not change compared with 2006, however, and also the amounts of food items bought did not change. Last year a member of the household spent considarbly more (by one fifth) only on bakery products and vegetables and 14 percent more on dairy products.
The share of expenses on transaport and leisure time activities sharply increased in the structure of household members' spending.
The proportion of compulsory expenses in the structure of household members' expenses declined as before, with a household member spending 39 percent, 1,695 kroons (EUR 108) of his or her total monthly expenditure, on food and housing. The year before the share of compulsory expenses was 40 percent.
The average monthly expenditure increased in all groups of expenses. Expenses on transport increased the most, by one third. Also expenses on eating out, education, clothes and footwear, leasure-time activities, food and housing increased on year.
Growth of expenses on transport was due to the higher price of gasoline and communal transport tickets, as well as the fact that many households acquired a used or new car as their living standards improved.
In eatintg out bigger costs were due to higher prices of food as well as of the respective services. Expenses on leisure-time activities were raised by higher sums spent on package tours.
Housing expenses were higher mainly because of a rise in prices, such as of thermal energy. In some significant groups of expenses growth in spending was remarkably small - a household member spent only 18 kroons a month more on communication services and eight kroons more on medical services than the year before, Statistics Estonia said.
The growth in spending was supported by incomes, which increased by 22 per cent per member of household. The increased incomes were due to a rise in wages and pension by respectively 25 and 16 percent. The fall in the economic growth last year did not yet affect the growth in incomes.
The assessments are based on a study of the households budgets carried out by Statistics Estonia since 1996. In 2007 there were nearly 3,400 households taking party in the study.
(EUR 1 = EEK 15.65)