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Households allocated the highest share to housing and rent expenditures

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Household Consumption Expenditures, 2017

According to the results of 2017 household budget survey; while the expenditures on housing and rent had the highest share in total consumption expenditures with a rate of 24.7%, the share of expenditures on food and non-alcoholic beverages was 19.7% in overall Turkey. The groups which had the lowest shares in total expenditures were health expenditures and educational services expenditures with the rates of 2.2% and 2.3% respectively.

The monthly average equivalised consumption expenditures were 1 854 TL

The monthly average equivalised consumption expenditures were 1 642 TL in 2016 and 1 854 TL in 2017.

The share of transportation in total expenditures had the highest increase

According to the results of the survey, the share of transportation expenditures increased from 18.2% to 18.7% with an increase of 0.5 points compared to the previous year. The share of food and non-alcoholic beverages increased to 19.7% from 19.5%. The share of various good and services expenditures was 4.4% in 2017 while 4.2% in 2016. The share of health expenditures increased to 2.2% from 2% and also the share of alcoholic beverages, cigarette and tobacco expenditures increased to 4.5% from 4.4%.

On the other hand, the share of housing and rent expenditures in total expenditures decreased from 25.2% to 24.7% with a decrease of 0.5 points compared to the previous year. The share of communication expenditures decreased from 3.7% to 3.4%. The share of expenditures on restaurant and hotels was 6.2% in 2017 while 6.4% in 2016. The share of clothing and footwear expenditures decreased to 5% from 5.2%. The share of entertainment and culture expenditures also decreased from 2.8% to 2.7%.

The share of expenditures on furniture, house appliances which were 6.3% and the share of educational services expenditures which were 2.3% remained unchanged from 2016 to 2017.

Distribution of household consumption expenditures by expenditure types, 2016, 2017

The share of food expenditures of low-income households was twice more than that of high-income households

When looking at the distribution of consumption expenditures by quintiles ordered by income in 2017, it was observed that the share of housing and rent expenditures was 31.9%, food and non-alcoholic beverages expenditures was 28.6%, transportation expenditures was 10.2% and furniture, house appliances expenditures was 5.7% for households in the first quintile (the lowest quintile).

The share of transportation expenditures was 23.9%, housing and rent expenditures was 20.9%, food and non-alcoholic beverages expenditures 14.6% and restaurant and hotels expenditures was 7.1% for households in the fifth quintile (the highest quintile).

Distribution of consumption expenditures by quintiles ordered by income, 2016, 2017
Expenditure patterns changed according to households’ main source of income

While households whose main source of income was wages and salaries allocated 23.2% share for housing and rent, 19.5% for transportation and 18.2% for food and non-alcoholic beverages, households whose main source of income was entrepreneurial income allocated 23.7% share for transportation, 20.8% for housing and rent and 18.8% for food and non-alcoholic beverages.

Households whose main source of income was property income, interest and dividends allocated 29.2% share for housing and rent, 18.5% for transportation and 14.6% for food and non-alcoholic beverages. Households whose main source of income was pensions allocated 30% share for housing and rent, 25.7% for food and non-alcoholic beverages and 12.8% for transportation.

The next release on this subject will be on July, 2019.

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Source: Tsi
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