Glossary:Household final monetary consumption expenditure (HFMCE)
Household final monetary consumption expenditure, abbreviated as HFMCE, is expenditure made by households on goods or services for the direct satisfaction of individual needs or wants.
Household final monetary consumption expediture is used to calculate the European Union (EU) harmonised index of consumer prices (HICP), an important measure of inflation. It concerns that part of final consumption expenditure which is:
- by households, irrespective of their nationality or residence status;
- in monetary transactions;
- on the economic territory of an EU Member State;
- on goods and services that are used for the direct satisfaction of individual needs or wants;
- in one or both of the time periods being compared.
- HICP methodology: household final monetary consumption expenditure (HFMCE) (background article)