Monthly average income increased by 3.8 pct y-o-y

The first quarter of 2015 brought a total monthly average income of RON 2,577 per household (RON 967 lei per person) in Romania, according to the National Institute of Statistics (INS). This represents a 3.8 percent increase from RON 2,477 household revenue year on year. However, compared to the previous quarter, total income has dropped by RON 2, from 2,579.

Expenditure showed a smaller rise of 1.6 percent year on year, going from RON 2,226 per month, per household in Q1 2014 to RON 2,263 lei in Q1 2015. This represented 87.8 percent of the total earnings. The previous quarter showed a higher level of household expenses of RON 2,357.

The money income was of RON 2,211 monthly on average per household (RON 830 per person) and the in‐kind income was of RON 366 monthly per household (RON 138 per person).

Wages and the other related benefits constituted the most important source of revenue (53.3 percent of the total household income), while social provisions made up 25.2 percent of revenues, agriculture income 1.9 percent, non‐agricultural independent activities 2.4 percent and property and household asset sales 1 percent. In‐kind income represents a rather large part of the household earnings 14.2 percent, a main share of it coming from the equivalent consumption value of the agro‐food products from own resources (12.6 percent).

As in Q1 2014 and the previous quarter, the main destinations of the expenditures are the consumption of food and non‐food goods and services, food and soft drinks holding roughly 38.1 percent of the household consumption in the first quarter of 2015.

Other expenditures holding a great share of total household expenses were income taxes, contributions and subscriptions paid to private and public administration and to the social insurance budgets (18.6 percent), as well as the cover of some needs related to the household production (poultry and animal feed, work payment for the household production, seeds, veterinary services, etc.).

The expenditure with investments, intended for purchasing or raising dwellings, purchasing land and equipment required by the household production and purchasing shares, hold a very small weight in the total household expenditure (0.3 percent), but have known an increase of 0.1 percent year on year. the last quarter of 2014 held a higher percentage of 0.7 points in this area.