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Sanctions can set the wage growth to zero in Russia

The wage growth can stop in 2015.

29.Aug.14 11:44 AM
By Abigail Richards


Sanctions can set the wage growth to zero in Russia
Negative influence of sanctions will effect Russian household sphere most of all. The increase of inflation level will lead to the fact that all population and private consumption incomes will be set to zero in the next year. Such renewed economic forecasts have been established by the Russian Ministry of Economic Development.

Experts firstly recalculated the future level of inflation. Its level has been increased by 1% during this year and now it is 7.5%. Price growth during the next year may be influenced by implementation of regional sales tax as well as insurance fees from the overall wage volume. The government is still discussing both these offers.

Along with inflation level growth the Ministry of Economic Development also predicts worsening of other rates which are closely connected with wage level of population.

According to this forecast the wage growth will almost stop in 2015. Salary will stay on the same level of increase by 0.2% which is almost nothing. Dynamics of consumption and retail services will also be set to zero.

At the same time inflation will not influence the wage level this year. Experts of the Ministry say that real salary volume will increase by 1.7% which is more than it was expected earlier.

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