Russians saw their real incomes fall by 11.5 percent in May compared to the previous month, the Rosstat state statistics service reported Monday.
In annual terms, real incomes fell by 5.7 percent in May, Rosstat said. Real wages shrank by 1 percent year-on-year in May.
Rosstat data also showed that the fall in retail trade accelerated last month, dropping by 6.1 percent year-on-year to 2.2 trillion rubles ($35 billion).
The Russian economy, hit by Western sanctions and weak oil prices, contracted by 3.7 percent in 2015. The slump continued this year, contracting by 1.4 percent in the first three months of 2016 compared to the same period in 2015, the Interfax news agency reported, citing Russia’s Economic Development Ministry.
The sharp fall in incomes forces Russians cut their spending even on necessary items. According to a poll conducted by market research company Romir, 43 percent of Russians had to slash spending on food over the past year and 31 percent said they cut down spending on shoes and clothes, the Vedomosti newspaper reported in April.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
