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Inverse Deflation Alert: Russia Hikes Minimum Vodka Price By 36%

Tyler Durden's picture





 

In a watershed moment for inverse deflation watchers everywhere, Russia, and specifically its alcohol watchdog entity aptly named "Rosalkogoluregulirovaniye" just delivered the judgment blow, with a decision to hike the minimum vodka price by 36% in 2013... as if a million cirrhotic livers cried out (or was it rejoiced) and were suddenly silenced. The reason for this shock and awe approach to defeating deflation: fighting counterfeiting, by hiking the tax on alcohol purchases, which in turn will push the baseline price of alcohol everywhere higher. In other news, a lightbulb is slowly lighting up above the president's head: "new taxes -> booze -> "fairness doctrine" -> bingo" as vice taxes are set to surge in a banana republic near you. Remember: "that's a tax for that" and if there isn't yet, there will be.

From Moscow News:

Russia’s alcohol watchdog is to fight counterfeit alcohol by raising the minimum retail price for vodka, following similar measure regarding shampanskoye.

 

The cheapest vodka in Russia could cost 170 rubles for half a liter from January 1, 2013, according to an order project by Russian alcohol watchdog Rosalkogoluregulirovaniye (RAR), Prime reported.

 

Thus the price of the cheapest vodka in Russia’s shops could rise by 36 percent, from the current 125 rubles.

 

It is more than the rise of tax, from 300 to 400 rubles (25 percent) per liter of spirit from Jan. 1 2013.

 

The planned minimum price from producers, according to the project, can be 132 rubles, with prices starting at 138 in wholesale sector.

 

The lowest retail price for other spirits will also rise. Minimum price for cognac will go up 28 percent, from 219 to 280, brandy will become 31.5 percent more expensive, from 190 to 250.

Elsewhere, Bill Dudley was last seen on a soapbox in Gorkyi Park, telling anyone who listens that vodka prices may be soaring, but the hedonic adjustments on the iPad 4 (or is it 5 now?) make it more than fair, and deflation is everywhere, as far as the bloodshot eye can see.

And now, Russian drunk Fight Club:

 

Sadly, it also means less "Need for Speed: Moscow"

 


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Mon, 11/19/2012 - 09:59 | Link to Comment kaiserhoff
kaiserhoff's picture

Now, that will piss off Ivan.

Mon, 11/19/2012 - 10:01 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

NOOOOOOOOOOOO!!!

 

The horror......the horror.

Mon, 11/19/2012 - 10:05 | Link to Comment Surly Bear
Surly Bear's picture

This just in....in self defense, Russia invades Poland saying has nothing to do wih vodka recipe....

Mon, 11/19/2012 - 10:13 | Link to Comment Zer0head
Zer0head's picture

so in real time what does it mean drunk by noon instead of 9am

Mon, 11/19/2012 - 10:41 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Probably didn't even really notice your Stolleys got replaced with Popov.

Mon, 11/19/2012 - 10:57 | Link to Comment samcontrol
samcontrol's picture

this is the plan inflate inflate everywhere....

Mon, 11/19/2012 - 11:14 | Link to Comment Manthong
Manthong's picture

That’s the way it always goes with communists… nonessentials drop in price and the necessities for life skyrocket.

This doesn't bode well for Putin’s popularity.

Mon, 11/19/2012 - 14:25 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

This is really really sucks! This is moving for shadow money to hard (liquor) assets combining with government tyranny! Putin can kiss big Russian after-thought! Putin is done!

Mon, 11/19/2012 - 10:05 | Link to Comment Surly Bear
Surly Bear's picture

This just in....in self defense, Russia invades Poland saying has nothing to do wih vodka recipe....

Mon, 11/19/2012 - 10:06 | Link to Comment bigdumbnugly
bigdumbnugly's picture

hitting 'em where it hurts

Mon, 11/19/2012 - 10:09 | Link to Comment vast-dom
vast-dom's picture

it's like they just took away all the water in Russia.

Mon, 11/19/2012 - 10:04 | Link to Comment kliguy38
kliguy38's picture

TO THE STREETS!!!!

Mon, 11/19/2012 - 14:29 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

I know of this Ivan for which you are speaking - Ivan Tudrinkalot

Mon, 11/19/2012 - 10:01 | Link to Comment Racer
Racer's picture

They are raising the price 36% to fight counterfeiting?

ROFLMAO, how stupid can you get!

Mon, 11/19/2012 - 10:02 | Link to Comment Capitalist
Capitalist's picture

The Russians are experimenting with a new central planning transmission mechanism: Vodka prices.

The ECB is taking note of this liquidity measure.

Mon, 11/19/2012 - 10:08 | Link to Comment wisefool
wisefool's picture

Of course. 1st world nations have high rates of stress, taxation, and the corresponing indulgences, low birth rate. 2nd and 3rd world nations win every war with the opposite approach. On a long enough timeline...

This tax will pay for the baby making incentives putin put in place a few years ago.

Mon, 11/19/2012 - 10:07 | Link to Comment RacerX
RacerX's picture

Right. It's not "Inflation", but "Negative Deflation".

Lower is better, no?

Mon, 11/19/2012 - 10:11 | Link to Comment orangegeek
orangegeek's picture

Communists are such a laughable bunch of little creatures.

Mon, 11/19/2012 - 10:29 | Link to Comment MassDecep
MassDecep's picture

Yeah, aren't we a laughable bunch?

 

Signed: Maryland USSA

 

Mon, 11/19/2012 - 10:15 | Link to Comment The Proletariat
The Proletariat's picture

Awesome!  Best Regards, Bootleggers. Mafia. Black Markets.

Mon, 11/19/2012 - 10:17 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Going long speakeasys <--- just Google it...and yes I'm that old.

Mon, 11/19/2012 - 12:48 | Link to Comment Things that go bump
Things that go bump's picture

Moonshine.

Mon, 11/19/2012 - 10:14 | Link to Comment bugs_
bugs_'s picture

Inelastic goods economics.

surprised they aren't slapping more taxes on gold.  oh wait that won't raise enough.  best stick to ATF and H.

Mon, 11/19/2012 - 10:24 | Link to Comment Mercury
Mercury's picture

 Sorry, Grey Goose is only for central planners. I'm sure you'll enjoy our house brand.

 

Mon, 11/19/2012 - 10:30 | Link to Comment kaiserhoff
kaiserhoff's picture

Must taste like panther piss.

Mon, 11/19/2012 - 10:45 | Link to Comment Winston of Oceania
Winston of Oceania's picture

Honestly you can have the wheat vodka, I'll take the authentic Polish potato vodka shaken or stirred...

Mon, 11/19/2012 - 10:17 | Link to Comment spentCartridge
spentCartridge's picture

Moonshine, bitchez ...

Mon, 11/19/2012 - 10:17 | Link to Comment yogibear
yogibear's picture

Benny Bernanke and the Federal Reserve is hoping for massive inflation. If Bernanke and the Fed can get 30 to 40% a year they would be happy. Some US companies are already raising price that amount.

Mon, 11/19/2012 - 10:19 | Link to Comment Terp
Terp's picture

4.25 EUR for half a liter. And the 5 EUR tax is on top of that?

 

Wow, booze in mother Russia is expensive. What happened to the times when a liter of vodka was cheaper than a loaf of bread? Damn.

Mon, 11/19/2012 - 10:22 | Link to Comment MiltonFriedmans...
MiltonFriedmansNightmare's picture

All your vodka are belong to us....

Mon, 11/19/2012 - 10:36 | Link to Comment De minimus
De minimus's picture

Still sounds like the old Pravda to me.

 

Mon, 11/19/2012 - 10:56 | Link to Comment LeisureSmith
LeisureSmith's picture

Raising the price on legal alcohol to combat counterfeiting.....genius. The black market says Thanks.

Mon, 11/19/2012 - 11:01 | Link to Comment Mister Ponzi
Mister Ponzi's picture

The Russian government announced some weeks ago to do more in their fight against smoking and especially drinking as a much larger percentage of (male) deaths relative to Western Europe/the U.S. is alcohol-related in Russia. A recent study delivered huge estimates regarding the economic loss due to these incidents. Therefore, a reaction like this is completely unsurprising. It is also safe to say that a population that - for good reasons - has learned during many decades to mistrust its government and to not rely on government's help will substitute expensive official vodka with cheaper home-made versions. If you look for a new profession why not trying eye doctor in Russia?

 

Mon, 11/19/2012 - 11:59 | Link to Comment monad
monad's picture

Long black market money laundering banks

Mon, 11/19/2012 - 12:07 | Link to Comment resurger
resurger's picture

lets see!

36% increase in Russia! How much will it cost now in Saudi Arabia in terms of Riyal that is... (Including the hike in smuggling prices as well)

Mon, 11/19/2012 - 12:12 | Link to Comment FrankDrakman
FrankDrakman's picture

170 rubles per half liter? That's $11 CAD for the full liter.

Here in the Great White North, $11 CAD will not even buy you a 375 ml bottle of Schmirnoff's. Because of our standardized bottles here in Ontario, you can get 750 ml for about $24 CAD (more for Grey Goose, Ketel, etc.), and 1.1 liter for $37. A Russki gets 3.5 liters for the same amount.

'course, nothing beats Detroit, where I once purchased a US gallon of Fleischman's vodka for $7 US.

Mon, 11/19/2012 - 12:46 | Link to Comment spentCartridge
spentCartridge's picture

70CL bottle of Smirnoff at my local Spa today ~ £13.00  (they gots a deal on)

 

The weed is free  :)

 

Mon, 11/19/2012 - 15:05 | Link to Comment 1000924014093
1000924014093's picture

If only one could buy futures in russian moonshine . . .

Mon, 11/19/2012 - 17:31 | Link to Comment Intoxicologist
Intoxicologist's picture

Drink up, bitchez!

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