Vodka prices are in Russia is expected to increase by 17 percent from next year. The reasons are increased taxes, import costs and logistics costs. Moreover, the ruble has lost its value. This was reported by the UK”Telegraph“.
Vodka producers demanded this price increase to compensate for inflation caused by the Ukrainian war. Veniamin Grabar, president of vodka producer Lagoda, said according to the Telegraph: “The government is adjusting the market to inflation and changing the cost structure.” After the increase, a half-liter bottle of vodka will cost 349 rubles (2.37 euros). from 299 rubles earlier in June.
Cheaper alternatives are in demand and dangerous
But experts warn about the consequences of rising prices. Analyst Maxim Chernogovsky told the Telegraph: “People on low incomes are looking for cheaper alternatives and turning to illegal alcoholic drinks and dangerous substitutes.” However, analysts assume that the actual inflation rate due to the economic war is much higher.
Russia's Central Bank raised its key interest rate to 19 percent in September and is now considering raising it further. These measures were intended to reduce the economic challenges caused by the war.