Incomes of Russians in October hastened the fall

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In October 2016 the real incomes of Russians decreased at an annual rate of 5.9%. The rate of decline more than doubled in September, and the decline continued for two years in a row

Real disposable income of Russians (the funds that remain at the disposal of the person after making all obligatory payments) in October 2016 declined at an annual rate of 5.9%, follows from the materials of Rosstat.

In comparison with September (minus 2.8 percent) decline has accelerated more than doubled, although it did not reach the level of August (minus 8.3 percent), showed the worst result in more than seven years.

Thus in total real incomes of Russians reduced continuously for the next two years: in recent times the growth in annual terms was recorded in October 2014. Thus, the standard of living of Russians is declining, even relative to crisis 2015, last October, the income of the average inhabitant of the country fell by 6.8%.

In January—October 2016 the real incomes of Russians decreased by 5.3%. In nominal terms, the income of the average Russian in October 2016 at an annual rate rose by 0.2%, amounting to approximately 31 thousand roubles And the rate of growth of the average nominal wages and far reached 8.2 per cent (its size by the end of October 2016 was estimated by Rosstat at 36.2 thousand rubles). However, the real wages that reflect the purchasing power of a worker’s money has increased by only 2%.

In October the experts of the Institute for social analysis and forecasting Ranhigs reported that recorded in the third quarter of 2016, a record since 1999, reduction of incomes of Russians. By the end of July—September the incomes of Russians have decreased at an annual rate of 6.1%. The authors of the report, the Ranepa, noted that “even during the crisis in 2009, the decline in real disposable income was somewhat lower than in the current year, then real income in the third quarter decreased by 3.3% compared to the same period last year.”

The Minister of labour and social protection Maxim Topilin said earlier that the pre-crisis level of real incomes of the population of Russia will come to the end of 2018.

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