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.

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Worst over for Moscow’s office market, but completions of new builds slow to crawl

Two-thirds of Russian firms want a stronger ruble

US Congress approves tougher Russia sanctions

Worst over for Moscow’s office market, but completions of new builds slow to crawl

Two-thirds of Russian firms want a stronger ruble

US Congress approves tougher Russia sanctions

Data

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Romanian banks expand loan portfolio by 4.2% y/y in June

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Deposit formation in Romanian banks eases amid slower income gains

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Romania tops instability ranking with average minister lasting just 1.2 years

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Romanians dream of migrating to Transylvanian IT hub Cluj

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Russians and Ukrainians suffer as inflation outstrips wage growth

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Romanian banks expand loan portfolio by 4.2% y/y in June

Increase in lending driven by both consumer and corporate segments, while the main engine remains the retail mortgage segment.

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More Romanians considering a move to Cluj Napoca than either Bucharest or abroad, in contrast with emigration trend seen in recent years, World Bank study finds.

Kazakhstan's GDP notably improves, climbing 4.2% y/y in H1

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Russians and Ukrainians suffer as inflation outstrips wage growth

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Data

Increase in lending driven by both consumer and corporate segments, while the main engine remains the retail mortgage segment.

Romania's banking system is still a net borrower vis a vis its non-government customers but is shifting toward a net lender position for the first time since the international economic crisis.

Romania has had three prime ministers since the start of 2017, and around 150 ministers since 1990.

More Romanians considering a move to Cluj Napoca than either Bucharest or abroad, in contrast with emigration trend seen in recent years, World Bank study finds.

Economic growth in Kazakhstan given added drive by relaunch of giant Kashagan oil field and moderate economic recoveries of main regional trading partners.

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Most Read

Selected articles from our premium news/views wire IntelliNews Pro

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