Sberbank recorded a sharp increase in consumer spending in Russia

The growth in consumer spending of residents of Russia from May 24 to May 30, 2021 compared to the same period in 2020 was 7.2%, according to a study by SberIndex (Sberbank analytical portal).

According to analysts, in April – May 2021, consumer spending of citizens grew at an annualized rate of 5.7%. In May, consumer demand steadily returned to growth even in real terms. Experts note that the structure of the population’s expenditures has approached the pre-crisis level. Thus, by the end of May, the service sector gained a steady plus (+ 5.0%) and in terms of nominal growth rates approached the food retail (+ 6.0%).

The current rise in costs and prices is attributable to three factors:

  • increase in salaries,
  • switching costs usually carried out abroad to the domestic market,
  • record high savings of the population, formed in 2020.

The inflationary factor was the large volume of savings accumulated in 2020. In total, Russians have saved 5.3 trillion rubles over the past year. Part of these funds in 2021 is directed to expenses due to the effect of deferred demand. Analysts believe that this may be one of the reasons for the faster growth of non-food expenditures in April-May compared to other categories of expenditures. The salaries of the higher-income groups of the population grew faster: in the richest 20% in the first quarter of 2021, they grew by 6.1%, and in the poorest 20% – by only 5.3%. Analysts believe that this may be partly due to the faster growth of salaries in the commercial sector compared to the budgetary sector, which is dependent on indexation.

About how Rosstat assessed the economic situation in Russia at the end of 2020, in the material “b” “The past GDP is not a friend to the future.”