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Seda Hergnyan

Armenia: People Spend 42% of Family Budget on Food

According to the “Social Snapshot and Poverty in Armenia, 2018” report, published by Armenia’s National Statistical Service with technical assistance from the World Bank, the average monthly per capita expenditures for households in Armenia in 2017 amounted to 44,413 drams (US$91.42 at current rate).

Of this, 41.5% was spent on food, 34.9% on non-food products, 19.2% on services, 3.7% on tobacco, and 0.7% on alcoholic beverages.

According to available data, the share of food expenditure in total consumption expenditures decreased as compared to 2004 (from 56.1% in 2004 to 41.5% in 2017).

Here’s the breakdown of the 15,131 drams spent on services:

Healthcare: 2,490 drams

Education: 1,047

Housing & Utilities: 6,495

Transport: 1,461

Communication: 1,921

Culture: 98

Legal Services: 518

Other: 1,470

The consumption of almost all food products has decreased in 2017 which is due to the increase of consumer price index for food as compared to previous year (by 4.1%). The share of expenses on food continues to be higher in the total consumption expenditures of rural households compared to that of urban households. At the same time, the share of expenses on food in rural households reduced from 62.5% in 2004 to 47.9% in 2017.

The share of expenditures on services, particularly on communication, has quite increased. The share of expenses on non-food products of rural population in consumption expenditures in 2017 has exceeded expenditures of urban population (20.3% and 18.5% respectively).The share of expenses on housing and utilities in total expenditures was larger for urban households than that for rural population.

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