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"

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
kaiserhoff's picture

Now, that will piss off Ivan.

GetZeeGold's picture





The horror......the horror.

Surly Bear's picture

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

Zer0head's picture

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

GetZeeGold's picture



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

samcontrol's picture

this is the plan inflate inflate everywhere....

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.

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!

Surly Bear's picture

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

vast-dom's picture

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

Boris Alatovkrap's picture

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

Racer's picture

They are raising the price 36% to fight counterfeiting?

ROFLMAO, how stupid can you get!

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.

RacerX's picture

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

Lower is better, no?

orangegeek's picture

Communists are such a laughable bunch of little creatures.

MassDecep's picture

Yeah, aren't we a laughable bunch?


Signed: Maryland USSA


The Proletariat's picture

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

GetZeeGold's picture



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

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.

Mercury's picture

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


kaiserhoff's picture

Must taste like panther piss.

Winston of Oceania's picture

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

spentCartridge's picture

Moonshine, bitchez ...

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.

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.

MiltonFriedmansNightmare's picture

All your vodka are belong to us....

De minimus's picture

Still sounds like the old Pravda to me.


LeisureSmith's picture

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

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?


monad's picture

Long black market money laundering banks

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)

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.

spentCartridge's picture

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


The weed is free  :)


1000924014093's picture

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