Page 9 - RUSRptOct18

"This improvement [in wages] reflects low headline inflation, limited indexation of utilities in July, the favourable base effect and conditions for the tradable sector profitability," VTB Capital said in a note.
The average monthly salary of employees in July was RUB42,640, which is 10.7% more than in July last year, according to Rosstat, while in the first half of the year, the average monthly salary increased by 11.1% compared to the same period in 2017.
But the distribution of income in the regions is worrying as it shows a large part of the population – maybe even the majority – is not feeling the benefits of this wage growth and remain poor. The government’s failure to improve the business environment to the point where SMEs can flourish prevents those that the bottom of the ladder improving their lot. As the high wages are concentrated in the wilds of the tundra the increases are accruing to the regions with large state-owned companies or raw material producers, but which are also sparsely populated, distorting the numbers.
Some 80% of Russia’s population live in the European part of Russia and according to Rosstat’s figures for June the average income in the Volga Federal district was RUB31,571.
Even the Central Federal District (that contains Moscow) doesn't do much better and if you count out Moscow City and Moscow Region’s income the regional average falls to RUB32,145 per month.
Average income by federal district RUB/month
Central Federal district
36,571
North west Federal district
49,153
Southern Federal district
32,265
North-Caucasian Federal District
28,416
Volga Federal District
31,571
Urals Federal District
57,067
Siberian Federal District
40,108
9 RUSSIA Country Report October 2018 www.intellinews.com