The expenses of Russian citizens reached a record high for May, increased by 6.4% compared to April of this year and by 10.3% compared to May 2019 in nominal terms, the Romir research holding revealed in a study made available to TASS on Monday.
“In May 2020, Russians increased their daily expenses – an increase of 6.4% compared to April (nominal expenses). Real expenses, that is, expenses cleared of inflation, also increased in May: an increase of 5.9% as against the past of the month, and against May 2019,” the study says.
Compared with the previous May, nominal costs were higher by 10.3%. “Expenditures in May are the largest in this period for all years of observation,” analysts said. Inflation-free spending also became the highest of May values.
The increase in spending compared to last year was primarily due to accelerated inflation, but it affected different segments of the population in its own way, analysts say. The most intensive expenses compared to the previous month and to the previous year were the average profit group (plus 7.2% and plus 12%, respectively). “High-income people added 8.4% and 5.4%, respectively, and low-income Russians – 6.2% compared to last month and 8.2% compared to May last year,” analysts said.
In all federal districts, with the exception of the Ural Federal District, spending growth was recorded. Residents of the Southern Federal District and the North Caucasus Federal District (plus 10.9%) and the Central Federal District (plus 7.6%), which makes the largest contribution to the growth of expenses in Russia as a whole, were the largest increase in expenses. “At the same time, the driver is not Moscow, but other cities. Against the past year, the largest growth was recorded in the Volga Federal District (plus 15.8%), and negative dynamics (minus 3.5%) are again observed in the Ural Federal District,” analysts said.
In May, Moscow residents increased their expenses compared to April by 4.8% and by 11.2% compared to May 2019. The growth rate in the capital was lower than the average for the federal district. Residents of St. Petersburg also increased their daily expenses, both by 6% compared to the previous month, and by 3.9% compared to May 2019.
In other cities with a population of one million, over the past month, residents’ expenses grew by 5.4%, and during the year – by 11.4%. In cities with population ranging from 500,000 to 1 mln people, residents’ expenses for the month increased by 7.3%, and compared to last year’s May – by 4.5%. “The monthly dynamics of the cities with population of over 100,000 people turned out to be similar: the growth was 7.4%. Compared to May 2019, the daily expenses of residents of this type of city increased by 10.1%,” experts said.
The research panel of Romir households is based on consumption data from 40,000 Russians, 15,000 households in 220 cities with a population of 10,000 or more.