Page 52 - RusRPTSept21

catch up with 2019 levels in 2H21. Raiffeisebank also expects real income to reach pre-crisis levels by the end of 2021.
VTBC also noted that RosStat methodology is not accounting for retail deposits migrating into equity brokerage accounts, thus likely underestimating real disposable income growth dynamics.
Russians’ real incomes have almost recovered to pre pandemic levels, but remain below what they were prior to the 2014 economic crisis. Real incomes remain 10% less than eight years ago. The cost of a kilogram of buckwheat has doubled. Russians can afford 42% less fish than they could in 2013, 39% less butter, and 38% less cheese. The prices of vegetables have skyrocketed. One of the few silver linings comes with an increased ability to afford meat. On top of the already challenging circumstances for Russians, an increased cost of transportation is also now driving up food prices. Some in the industry are reporting logistical costs rising between 10-30%, which will prevent any reduction in costs of vegetables as a result of a successful harvest. Among reasons reported for the rising transport costs are a shortage of refrigerated cars and a shortage of drivers due to pandemic restrictions on migration.
52 RUSSIA Country Report September 2021 www.intellinews.com