Economics News

Unemployment fell to the lowest level in almost three years in June whilst retail sales grew. Unemployment dropped to 6.1% in June, its lowest level since August 2008. Slower inflation, led by an easing in food prices increases, is boosting incomes and supporting consumer confidence. Real disposable incomes unexpectedly grew in June for the first time since February, rising 0.7%, and real wages advanced by 4.2%. Retail sales rose 5.6% from a year ago and 1.2% since May. The World Bank has lowered its forecast for Russian consumer price growth anticipating the inflation to slide to a projected year end level.

President Dmitry Medvedev Budget message outlined 12 key areas of budget policy for 2012 - 2014 with major attention paid to modernization, boosting economic competitiveness, and long-term development. Key to his strategy is the reduction of budget dependence on oil and gas revenues as well as improving the pension and compulsory social insurance system. This should be considered in the context of the upcoming Duma elections at the end of 2011 and Presidential elections in early 2012.

Russian two stock exchange markets, the RTS and MICEX, are to be merged with the aim of increasing Russia's ability to position itself as a new financial centre.