The decline in real income has slowed to the lowest in six...

The decline in real income has slowed to the lowest in six months

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Buyers in one of the grocery stores

Photo: Vladimir Astapkovich/RIA Novosti

In September 2016, the real incomes of Russians decreased at an annual rate of 2.8%. The rate of decline was the slowest since March 2016, but the decline has continued for 23 consecutive months

Real disposable income of Russians (the money people can spend after payment of all obligatory payments) in September 2016 was decreased in comparison with September 2015 to 2.8%, follows from materials of Rosstat.

Compared to the previous month, the rate of decline of real income slowed down in August, the decline was estimated to be 8.3%, the worst figure for more than seven years. In September, the rate of decline in real income was the lowest in the last six months. The last time less than 2.8% of incomes of Russians decreased in March 2016.

The total duration of continuous decline in the real income of Russians has reached 23 months. In recent times the growth in annual terms was recorded by Rosstat in October 2014.

In nominal terms, the income of the average Russian in September 2016 at an annual rate increased by 3.2%, amounting to approximately 30.1 thousand rubles. While the growth rate of the average nominal wage increased to 9.4%, but real wages, reflecting the purchasing power of a worker’s money, rose by only 2.8%.

According to Rosstat, average salary in the country in September 2016 was approximately 36.1 thousand RUB.

In mid-October, the Minister of labour and social protection Maxim Topilin predictedthat the pre-crisis level of real incomes of the population of Russia will come to the end of 2018.

“I’m talking about those real indicators of wages and pensions. We expect that by the end of 2018 will be the recovery. Growth will begin and in the 2017-2018 year. And in three years, 2018, 2019, we believe that these revenues will recover,” — said Topilin in an interview to the program “Pozdnyakov” on NTV.

Previously, experts of ROMIR reportedthat in September 2016 in Russia for the first time since 2013, the increased real expenditures. In this most rapidly increasing costs residents of cities with population over 500 thousand people (plus 8.2%, in annual and in monthly terms) and Russians with average income (plus 7.3 percent compared to August and a plus of 8.9% compared to September 2015). As a result, nominal spending Russians rose to the September maximum of five years.