this post was submitted on 25 Mar 2024
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Most Russians have never lived as well as they do now. Nor do people believe that things are about to get worse. The fact that Russians are living better is evident from their outgoings. Spending at cafes and restaurants, for example, is increasing.

After the start of the war, inflation rocketed – but wages more than kept pace.

Demand for non-food goods (i.e. items where purchases can be postponed or even canceled) has recovered from its slump in the months after the full-scale invasion of Ukraine in 2022. Its rate of growth now exceeds both inflation, and wage increases.

This does not look like the sort of panic buying that happens in a crisis, when many rush out to buy whatever consumer durables they can afford. Instead, Russians appear to have sufficient confidence in their finances to take out personal loans. Consumer confidence is approaching record levels, Nabiullina told reporters on Friday.

Of course, increased prosperity is not universal. But those who have lost out are the more wealthy Russians. The average income of the richest 10% in Russian society has increased by 27% since the start of the war. While this may seem a lot, it’s the lowest rise of all 10 income groups, and barely matches the combined inflation rate for the past two years. Incomes for the poorest in society have grown much faster.

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[–] [email protected] 13 points 7 months ago (2 children)

Yeah I feel like a lot of people miss that point. Wages are still low, especially outside major cities. Not to mention the unequal distribution. Also for instance the cost of living in Turkey is also lower than the West, but it doesn't mean that the people living there can actually afford it. It only serves westerners who get to spend a cheap vacation there.

[–] [email protected] 9 points 7 months ago

im not accusing lemmygrad members of this, im just very triggered by westerners travelling to non-imperial core countries, then coming back saying "wow everything is so cheap there :)" without actually considering the material conditions of the local population.

[–] [email protected] 4 points 7 months ago

In my case, I make money via commissioned artwork, so my wages would be the same no matter where in world I am living. But over here I have to scramble to pay rent every month, but in another nation I would be much more secure doing the same thing and would be able to afford my basic needs much more easily. This is a pretty insensitive outlook though, which is why I deleted my other comment.