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Living Standards Measurements Study - Serbia 2002 - 2007

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Table 5.5. Proportion of monthly expenditures for electricity, telephone and utilities of total<br />

household expenditures, <strong>2007</strong><br />

Total<br />

Poverty line<br />

Expenditure quintiles<br />

Below Above The poorest 2 3 4 The richest<br />

Electricity 4.1 7.3 4.1 6.7 5.7 4.9 4.1 2.7<br />

Telephone 1.8 2.4 1.8 2.4 2.0 2.0 1.8 1.5<br />

Utilities 3.1 3.9 3.0 3.5 3.2 3.0 3.0 2.7<br />

Table 5.6. Average monthly household expenditure for electricity, telephone<br />

and utilities, <strong>2002</strong> and <strong>2007</strong><br />

Monthly costs (dinar) <strong>2002</strong> <strong>2007</strong><br />

Expenditure index Price index 6<br />

<strong>2007</strong>/<strong>2002</strong> <strong>2007</strong>/<strong>2002</strong><br />

Electricity 1 096 2 190 199.8 197.1<br />

Telephone 547 973 177.9 107.6<br />

Utilities 7 529 1 633 308.7 271.4<br />

There was a considerable increase in these<br />

expenditures from <strong>2002</strong> to <strong>2007</strong>. The increase of<br />

expenditure for electricity is slightly higher than the<br />

increase of the price of electricity which means that<br />

the price of electricity increased by 97 percent in<br />

<strong>2007</strong> compared to <strong>2002</strong>, while the increase of<br />

expenditure was 99.8 percent. The price of<br />

telephone services in <strong>2007</strong> rose by 7.6 percent<br />

compared to <strong>2002</strong>. However, there was a<br />

considerable increase in telephone expenditures<br />

(around 78 percent) during the observed period. The<br />

discrepancy between the increase in telephone<br />

prices and the increase of expenditure can be<br />

explained by the introduction of a new tariff system<br />

(from 01.05.2006). From <strong>2002</strong> to <strong>2007</strong> there was a<br />

rise in the price of utilities by 171.4 percent while<br />

expenditure for utilities slightly more than tripled<br />

(Table 6).<br />

A more significant difference between the<br />

shares of housing expenditures (electricity,<br />

telephone and utilities) in the total household<br />

expenditures is noticeable if we consider households<br />

living above and below the poverty line, as well as<br />

by expenditure quintiles. As expected, households<br />

living below the poverty line have greater share of<br />

these expenditures of their total expenditure,<br />

especially the poorest households.<br />

Graph 5.2. Proportion of expenditure for electricity of total household expenditure, <strong>2007</strong> (percent)<br />

6,7<br />

5,7<br />

4,9<br />

4,1<br />

2,7<br />

The poorest 2 3 4 The richest<br />

Expenditure quintiles<br />

64 <strong>Living</strong> <strong>Standards</strong> <strong>Measurements</strong> <strong>Study</strong> - <strong>Serbia</strong> <strong>2002</strong> - <strong>2007</strong>

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