Russia’s war in Ukraine and double-digit inflation sent real disposable incomes plummeting at the start of 2022, statistics agency Rosstat reported on Wednesday.
Real disposable income, a closely tracked indicator of the financial well-being of Russian households, calculates how much residents have left to spend or save after payments.
According to Rosstat, Russian households spent 17.1 trillion rubles ($231 billion) while earning only 15.82 trillion rubles ($213 billion) in January-March this year.
The difference of 1.3 trillion rubles – an average of 14 billion rubles ($188 million) per day – amounts to a drop of 1.2% in annual terms.
The main factor weighing on Russians’ savings has been annual consumer inflation which jumped 9.2% in February and 16.7% in March, a figure not seen since January 1999, according to the website. independent business news The Bell.
Real disposable income for Russians last fell in the pandemic-hit first quarter of 2021, according to the RBC news website.
The Rosstat figures came out on the day the head of Russia’s Accounts Chamber, Alexei Kudrin, predicted inflation of 20% and an economic decline of 9-12% in 2022.
“This crisis is bigger than the 2009 crisis, bigger than the pandemic crisis,” Kudrin told lawmakers.
“We are going to live in a very difficult situation for almost a year and a half or two years.”