The negative consequences of the rise in price of vodka are named

Economist Krichevsky: an increase in the minimum prices for alcohol will increase the consumption of a surrogate

Doctor of Economics, Professor Nikita Krichevsky called prices for alcoholic beverages. He expressed his opinion on his personal Telegram channel.

The economist believes that if the bill is approved, the government will cancel out its efforts to curb price increases during the year. “Does it not understand that its reckless step will only spur inflation?” – wrote Krichevsky. He also believes that the Russian budget does not and will not have problems with filling it in the coming years, “unless, of course, the Cabinet of Ministers undertakes some mind-blowing expenditures.” Krichevsky doubted that the increase in minimum prices will affect the volume of alcohol consumption. “Yes, for the growth of home brewing and the consumption of surrogates, but no for the reduction of drunkenness and alcoholism,” the economist said.

On November 15, the Ministry of Finance published a bill that provides for an increase in retail prices for vodka from January 1, 2022 by 7.4 percent, from 243 to 261 rubles for a half-liter bottle. The cost of cognac will increase by 7.6 percent, from 446 to 480 rubles. The brandy will rise in price from 324 to 348 rubles.

Press Secretary of the Russian President Dmitry Peskov said that the head of state has no position on the minimum prices for alcohol. A Kremlin spokesman called the Finance Ministry's proposal a matter of economic expediency.

Pavel Shapkin, chairman of the National Union for the Protection of Consumer Rights, said that an increase in the minimum retail price (MRP) for alcohol would not cause an actual rise in retail prices. In his opinion, the inspection authorities need the MRC to distinguish legal from counterfeit products.

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