Page 53 - RusRPTFeb23

4.5.3 Retail sector dynamics
Russia November retail sales volume –7.9% y/y (after –10.0% in October).
After the invasion of Ukraine this has been the most visible economic effect for ordinary Russians – drastic reduction in living standards. Foodstuff and drinks only –3.4% y/y, everything else –11.7% y/y. Related to falling living standards: Completed residential buildings in November –38.7% y/y, after –10.6% in October. Overall construction activities still growing strongly, though.
Retail sales, a good proxy for consumption trends, has contracted sharply. The volume of November retail sales was down by 8% y/y. High inflation has eroded the purchasing power of Russian consumers, with consumer price inflation running at 12% p.a. in November. Despite recession, the unemployment rate has remained low and continued to hover around 4% in November.
53 RUSSIA Country Report February 2023 www.intellinews.com