Increased state spending is also driving a growing threat to Russia’s economy: inflation. Prices rose 8.9% in November 2024 compared to the previous year, more than twice the state’s 4% target.
This is the (likely) correct official inflation rate, but it doesn’t tell the whole story. I’d argue that things are worse.
In November, prices for food rose +9.9% (compared to +9% in October), most notably butter +34.1% (compared to +29.7% in October).
So the situation is much worse, especially for Russia’s poor described in the article (the poorer you are, the higher the proportion of your income spent for food).
The Russian research center ROMIR calculates the “Deflator Index,” which tracks real changes in prices for everyday goods (Fast-Moving Consumer Goods, FMCG), describing it as “the average personal inflation rate for each consumer.”
ROMIR’s latest update for September 2024 puts annual inflation in Russia at 22.1% (Here again, this is much more important for people in the lower income groups which the article refers to.)
Although it is true that median salaries in Russia rose by 19.8% (Sberbank’s SberIndex latest data shows median salaries rose from 52,272 rubles in October 2023 to 62,632 rubles in October 2024), we must conclude that purchasing power in Russia continues to decline at a much faster pace than official data show us.
Putin’s recent statements that Russians’ “disposable incomes have also increased [and are outpacing inflation]”, and “the overall situation is stable and reliable,” is outright false.
I have a hard time believing that annual inflation is limited to ~22% when food prices have jumped that much in 2 months. This screams statistics fudging to conceal reality to me.
Putin’s recent statements that Russians’ “disposable incomes have also increased [and are outpacing inflation]”, and “the overall situation is stable and reliable,” is outright false.
when was the last time the sickly potato shaped dickhead said anything real? like surely he’s said one real thing at somepoint? or no? maybe not?
It’s a good article, I have just one remark.
The article says:
This is the (likely) correct official inflation rate, but it doesn’t tell the whole story. I’d argue that things are worse.
In November, prices for food rose +9.9% (compared to +9% in October), most notably butter +34.1% (compared to +29.7% in October).
So the situation is much worse, especially for Russia’s poor described in the article (the poorer you are, the higher the proportion of your income spent for food).
The Russian research center ROMIR calculates the “Deflator Index,” which tracks real changes in prices for everyday goods (Fast-Moving Consumer Goods, FMCG), describing it as “the average personal inflation rate for each consumer.”
ROMIR’s latest update for September 2024 puts annual inflation in Russia at 22.1% (Here again, this is much more important for people in the lower income groups which the article refers to.)
Although it is true that median salaries in Russia rose by 19.8% (Sberbank’s SberIndex latest data shows median salaries rose from 52,272 rubles in October 2023 to 62,632 rubles in October 2024), we must conclude that purchasing power in Russia continues to decline at a much faster pace than official data show us.
Putin’s recent statements that Russians’ “disposable incomes have also increased [and are outpacing inflation]”, and “the overall situation is stable and reliable,” is outright false.
I have a hard time believing that annual inflation is limited to ~22% when food prices have jumped that much in 2 months. This screams statistics fudging to conceal reality to me.
when was the last time the sickly potato shaped dickhead said anything real? like surely he’s said one real thing at somepoint? or no? maybe not?