Regional Economy report: consumer activity above pre-pandemic level

In most Russian regions, consumer activity exceeded the pre-pandemic level in May—June 2021. This was driven by rising real wages, still elevated inflation expectations, and expanding retail lending.

As demand was growing, companies continued to pass through their higher costs to prices. This trend was particularly evident in the market of construction materials and tourism services. However, the worsening epidemic situation and the reintroduction of restrictions on business activity in many regions had an adverse impact on companies’ expectations regarding future demand, especially in services.

The new issue of the report covers such special topics as the influence of global commodity markets on Russia’s economy and the recovery of labour markets in Russian regions.

More details on the economic situation in Russian regions are available on the Bank of Russia website in the report Regional Economy: Commentaries by Bank of Russia Main Branches.