Consumer confidence fell in the third quarter as Russians became less optimistic about their personal incomes after inflation advanced.
Confidence slid 4 percentage points to minus 11 percent, the State Statistics Service said Thursday, 3 percentage points more than the previous quarter.
The decline mainly resulted from the “worsened subjective opinion of the population regarding expected and actual changes in the economy, as well as expected changes in their personal financial situation,” according to the statement.
Banks including Raiffeisen and Aton Capital cut Russia’s 2010 economic growth forecast last month after the drought hobbled agricultural output and fueled inflation. The economy contracted a seasonally adjusted 0.4 percent in August as consumer prices rose a monthly 0.6 percent, the biggest increase for that month in a decade.
The Central Bank left its main interest rates unchanged last month, saying the bank “still believes that inflationary risks, shaped by monetary conditions, are at an acceptable level.”
Consumer prices rose in September for a second consecutive monthly gain, adding 0.8 percent, according to the statistics office. Annual inflation accelerated to 7 percent in the month.
The average monthly wage, adjusted for inflation, rose 6.6 percent in August, the same as in the previous month, according to the statistics service.
More Russians believe that their household income growth won’t keep up with inflation, according to the consumer confidence index. Eighty-one percent of surveyed Russians said in the third quarter that consumer-price growth will outpace income growth, compared with 73 percent in the previous quarter.
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.
