Page 33 - RusRPTOct19

4.5.2 Income dynamics
Real disposable income growth improved in 2Q19, but was still negative.
Real disposable income declined 0.2% y/y in 2Q19, although this is still better than the 2.5% y/y decline in 1Q19. It was down 1.3% y/y in 1H19.
The better dynamics in 2Q19 could be attributable to ongoing disinflation, with inflation slowing to 4.7% y/y in June from 5.0% y/y in January, as well as stronger growth of wages.
Nominal wages rose 7.4% y/y in 2Q19, accelerating from 6.5% y/y in 1Q19 (up 7% y/y in 1H19).
Real wages were up 2.3% y/y in 2Q19, versus 1.3% y/y in 1Q19. The labour market has continued to show positive dynamics, with unemployment declining to 4.3%, the lowest level since September.
The Russians consider a family with an average income of one of its members not greater than RUB12,500 ($193) as poor, the independent pollster the Levada Center found. Using this number to set the poverty line and the subjective poverty line is 11.6% higher than the official poverty line. The cost of living, in the second quarter of 2019, amounting to RUB11,200 ($173). According to the survey, to maintain a normal standard of living, the Russian family needs about RUB38,100 per person.
The authors of the study also asked Russians to name the amount of per capita income of their family over the past month - it turned out to be 2.3 times lower than the estimate of normal income and equal to RUB16,800. Only 7% of Russians earned an income of RUB38,100 or more.
According to estimates by Russian Prime Minister Dmitry Medvedev, more than 19mn people live of Russian (13% of the total population) have incomes below the subsistence level. At the beginning of 2019, a pilot project to reduce poverty was launched in eight regions of the country, within the framework of, which it is planned to create a register of poor families and prepare individual programs.
33 RUSSIA Country Report October 2019 ww.intellinews.com