Large Share of Household Food Expenses Tied to High Costs

EghtesadOnline: The recent Household Expenditure Survey by the Central Bank of Iran shows food and beverages had a 23% share in the Iranian households’ expenditures in the last fiscal year (ended March 20, 2017), putting this category in second place after housing and utility expenses (35.5%).

News ID: ۷۷۹۵۷۹

07 October 2017

This is while food and beverages account for 17.7% of household expenses in the Middle East, the news portal of Iran Chamber of Commerce, Industries, Mines and Agriculture reported.

According to Chairman of Agriculture Commission of Tehran Chamber of Commerce, Industries, Mines and Agriculture Kaveh Zargaran, the large share of food in the Iranian family expenses is due to the high costs of food and beverages in the country.

He said the share of food and beverages in household spending is 17.5% in Europe and 13% in Africa, while the global average is at 30%, according to Financial Tribune.

“Iranians spend almost four times more on food compared to Americans. In the US, the share of food in family spending is 6.6%,” he said.

In Zargaran’s words, in most developed countries, food and beverages constitute less than 10% in total household expenditure.

The annual Household Expenditure Survey is undertaken by CBI’s Department of Statistics by collecting information from Iranian households on their expenditure, income, savings and ownership of consumer durables, financial investments and assets.

According to the Department of Statistics, the survey is conducted with the latest updates from the United Nations System of National Accounts and is compatible with the UN “Classification of Individual Consumption by Purpose”.

The report is known for its large coverage of households (17,543 households) in 79 cities across Iran and is published every year.