Consumption differences between the richer and poorer sections of Hungarian society

Portfolio.hu shared the report of KSH (Central Statistical Office) regarding the households’ consumption in 2015. According to the statistics, by an average household 74,608 HUF were spent on consumption per person every month. This sum was 8.7% higher than the one in 2014. But, there is still a great – approximately threefold – difference between the upmost and lowest fifths’ spending, even though their difference somewhat decreased compared to the numbers of 2014. There are further differences in the country, based on regions and qualifications: it is said that people living in Central-Hungary and those having a higher degree spent far the most.

In 2015 the monthly consumption of households per person was 74,608 HUF. The richest part of the society (upper 20%) spent an average 132,211 HUF per month, while the poorest could afford 43,212 HUF consumption per month. Generally, most of the money (19,885 HUF) was spent on food and non-alcoholic drinks, then people spent second most (16,595 HUF) on the maintenance of their homes and household energy, and the third (8076 HUF) most common spending was on transport.

The report shows that, in every product group, the richest spent at least twice as much as the poorest. Not surprisingly though, the smallest differences occurred in the case of foods (2.1x), alcoholic drinks and tobacco (2.3x), and the home maintenance, household energy (2.5x) consumptions. The biggest differences however, were present in the hospitality industry and education, and when it came to culture and entertainment. In the case of entertainment related spending, the richest spent 7 times more.

Although, it is important to note that the differences between the two extreme income categories had visibly decreased compared to those in 2014. In 2014, wealthier people spent 3.4 times more on consumption than the less wealthy, but in 2015 this rate was 3.1. Also, to the increase of the average consumption mainly the lower income groups contributed. The growth rate in the case of the richest was 6.5%, whereas the bottom fifth spent 18.5% more than they did the year before. As, according to the data of KSH, those in the worst financial situation in the last year spent 6,744 HUF more than in 2014.

In absolute terms the money spent on foods and home maintenance increased the most, while relatively, furnishings, household operations and other products, services gained the biggest increase in consumption. Clothing and educational consuming increased too, but on a smaller base: a poor person, for example, spent 431 HUF more on clothing and 61 HUF more on education per month.