Page 46 - RusRPTDec20

4.5.2​ Income dynamics
In Russia, the state has curbed the decline in household income through social subsidies and wages​. Real household income fell by more than 8% year-on-year in the second quarter, and the annual decline was almost 5% in the third quarter as well. The decline is the sharpest since 2015−2016, when rapid inflation eroded significant increases in nominal income.
Also this year, the development of real income has been partly affected by consumer price inflation, which has continued at an annual rate of 3–3.5%. In addition, nominal income declined exceptionally in the second quarter of the year, dominated by interest rate restrictions.
This year, the deeper fall in household income has been dampened by a significant increase in social subsidies from state social fund budgets, which is part of the government support measures launched by President Putin in the early spring. In this respect, this year is reminiscent of the recovery of 2009–2010, but the increase in social benefits is now not focused on pensions but on other social benefits, e.g. for families with children. According to Rosstat's household income statistics, social benefits accounted for less than one-fifth of total household income in 2019.
Other household incomes, on the other hand, have declined. Non-wage income in particular has fallen infrequently. entrepreneurial income, dividends and interest income. Household wages (including an estimate of the wages in
46 ​RUSSIA Country Report​ December 2020 www.intellinews.com