New analyses of Rosstat data reveal a disconnect between the reported purchasing power of Russians’ incomes since the pandemic and what families actually experience in daily life. Elena Veduta, a noted economist and professor at Moscow State University, questions the reliability of the subsistence minimum as calculated by Rosstat. She notes that the changes in methodology, described as computing reforms, appear to lift the appearance of prosperity while the lived reality for many households shows wounds from rising prices in essential goods and services.
Veduta argues that the current approach relies on abstract income figures from previous periods rather than measuring the cost of a defined basket of necessities. In many other countries, this basket-based method forms the basis of a living wage estimate, aligning more closely with actual expenses for food, medicine, housing, utilities, and other everyday essentials. She emphasizes that the older Rosstat framework omitted several indicators that would better reflect real living costs and the financial pressures felt by ordinary households.
According to data reported on September 8 by RBC, Rosstat indicated that the ratio of average household income to the subsistence level reached 332.5 percent in the second quarter of 2023, suggesting strong purchasing power. Finance experts, including Alexander Safonov, a professor at the government-affiliated Finance University, linked the rise in purchasing power to growing wages and a drop in unemployment. Yet critics warn that rising wage figures may not fully capture the net economic strain on households, particularly given higher prices for groceries, healthcare, building materials, utilities, and other everyday needs. The overall picture may overstate welfare while masks debt growth and tighter household budgets that are not systematically reflected in the statistics.
Historically, central banks and statistical agencies have highlighted that measured income levels can diverge from actual consumer experience if price dynamics and debt burdens are not integrated into the framework. The contemporary debate centers on whether the present subsistence minimum and the corresponding living standards adequately reflect the day-to-day costs faced by families, or whether a more basket-focused approach would provide a truer snapshot of economic well-being. These questions are not merely academic: they influence policy discussions, social support planning, and the perceived health of the economy among the public. In this context, observers call for transparent methodology and timely updates that capture both income movements and real price changes across essential sectors. In the absence of such alignment, there is a risk that policy responses may miss the real needs of households and the pressures they endure. (citation: Rosstat reports via RBC and commentary from Veduta)