Russians and Ukrainians suffer as inflation outstrips wage growth

By Henry Kirby December 18, 2015

Ukraine’s annual wage growth has been in double-digits for all but one month this year. This would normally be cause for celebration, but October’s massive year-on-year wage rise of 29% will feel more like a 17% decrease for most people, as rocketing inflation continues to make staple goods increasingly unaffordable.

Price increases are outpacing wage growth in Russia too, where double-digit consumer price rises show no meaningful signs of slowing any time soon. In sanctions-hit Russia, unlike Ukraine, wages are actually falling.

The measure of wage growth minus inflation is a crude way of looking at what is often recorded as real wage growth, but allows us to gauge how affordable or unaffordable it is to live and work in a given country.

The grim situations of Russia and Ukraine reflected in the bne:Chart could actually be worse still if median rather than average wage growth is used, as average wages are often unrepresentatively high due to high-earning outliers.

US relaxes Rusal sanctions in surprise move, will lift completely if Deripaska sells

Europe pushes back against US sanctions on Russia

Tens of thousands defy warning not to reassemble in Yerevan

US relaxes Rusal sanctions in surprise move, will lift completely if Deripaska sells

Europe pushes back against US sanctions on Russia

Tens of thousands defy warning not to reassemble in Yerevan

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US relaxes Rusal sanctions in surprise move, will lift completely if Deripaska sells

Europe pushes back against US sanctions on Russia

Tens of thousands defy warning not to reassemble in Yerevan

US relaxes Rusal sanctions in surprise move, will lift completely if Deripaska sells

Europe pushes back against US sanctions on Russia

Tens of thousands defy warning not to reassemble in Yerevan

Data

Home sales in Turkey fall 14% y/y in March

Given Turkey's economic difficulties, the central bank and lenders have not moved to provide cheaper loans as desired by ruling politicians.

Turkish consumer confidence sees slight 0.8% m/m gain in April

Figures finalised before the surprise announcement of early elections show a small recovery in sentiment.

Turkey’s end-year inflation expectations climb to 10.07% in April

Regular survey shows respondents expect the rate to be nowhere near the central bank’s 5-7% upper target range.

IMF retains Ukraine economic growth in 2018 at 3.2% y/y

The International Monetary Fund (IMF) has retained its forecast for Ukraine's economic growth in 2018 at 3.2% year-on-year, and reviewed downwards the 2019 forecast to 3.3% y/y from 4% y/y, the multinational lender said in its World Economic Outlook

Only Istanbul stock exchange feels weight of early election call from Erdogan’s junior ally

Benchmark index down 1.76% d/d but Turkish lira and bonds relatively unaffected.

Home sales in Turkey fall 14% y/y in March

3 days ago

Turkish consumer confidence sees slight 0.8% m/m gain in April

3 days ago

Turkey’s end-year inflation expectations climb to 10.07% in April

4 days ago

IMF retains Ukraine economic growth in 2018 at 3.2% y/y

5 days ago

Only Istanbul stock exchange feels weight of early election call from Erdogan’s junior ally

6 days ago

Russians and Ukrainians suffer as inflation outstrips wage growth

Related Content

US relaxes Rusal sanctions in surprise move, will lift completely if Deripaska sells

Europe pushes back against US sanctions on Russia

Tens of thousands defy warning not to reassemble in Yerevan

Related Content

US relaxes Rusal sanctions in surprise move, will lift completely if Deripaska sells

Europe pushes back against US sanctions on Russia

Tens of thousands defy warning not to reassemble in Yerevan

Data

Home sales in Turkey fall 14% y/y in March

Given Turkey's economic difficulties, the central bank and lenders have not moved to provide cheaper loans as desired by ruling politicians.

Turkish consumer confidence sees slight 0.8% m/m gain in April

Figures finalised before the surprise announcement of early elections show a small recovery in sentiment.

Turkey’s end-year inflation expectations climb to 10.07% in April

Regular survey shows respondents expect the rate to be nowhere near the central bank’s 5-7% upper target range.

IMF retains Ukraine economic growth in 2018 at 3.2% y/y

The International Monetary Fund (IMF) has retained its forecast for Ukraine's economic growth in 2018 at 3.2% year-on-year, and reviewed downwards the 2019 forecast to 3.3% y/y from 4% y/y, the multinational lender said in its World Economic Outlook

Only Istanbul stock exchange feels weight of early election call from Erdogan’s junior ally

Benchmark index down 1.76% d/d but Turkish lira and bonds relatively unaffected.

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Russians and Ukrainians suffer as inflation outstrips wage growth

Related Content

Related Content

Data

Given Turkey's economic difficulties, the central bank and lenders have not moved to provide cheaper loans as desired by ruling politicians.

Figures finalised before the surprise announcement of early elections show a small recovery in sentiment.

Regular survey shows respondents expect the rate to be nowhere near the central bank’s 5-7% upper target range.

The International Monetary Fund (IMF) has retained its forecast for Ukraine's economic growth in 2018 at 3.2% year-on-year, and reviewed downwards the 2019 forecast to 3.3% y/y from 4% y/y, the multinational lender said in its World Economic Outlook

Benchmark index down 1.76% d/d but Turkish lira and bonds relatively unaffected.

Newsletters

Most Read

Selected articles from our premium news/views wire IntelliNews Pro

Follow Us On

Reports

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