Household income up 44.8% yoy

The State Statistics Committee reported yesterday that nominal household income increased 44.8% yoy in 1H08, down from 45.9% yoy in 5M08. Real disposable income slowed down to 14.7% yoy in 1H08, from 16.0% yoy in 5M08. Polina Khomenko: The main contributor to nominal income growth in June was in-kind social payments, which jumped 38% mom. This, however, had no influence on disposable income as in-kind payments are not included in calculation of disposable income. We expect further decrease in real disposable income growth, as the state budget does not envisage significant increments in wages and social payments until the yearend. We stick to our forecast of 12.5% yoy growth in real disposable income in 2008.