Spirits have been cheaper for months than in the same month last year and are therefore also weighing on inflation. According to the economic research institute, there is a reason for this.
“Daily inflation feels much higher than the 8.7 percent announced in June 2022.” These kinds of sentences pile up. And have their justification. For example, staple foods have increased by double digits across the board, butter even by 36.3 percent.
Despite war in Ukraine: vodka remains cheap
“Inflation must be suppressed,” Chancellor Karl Nehammer said at the state party’s Tyrolean ÖVP conference in July, otherwise there would be “only two decisions afterwards: alcohol or psychotropic drugs.” The first is one of those product groups that weaken overall inflation on paper.
Even vodka cheaper than in May 2021
Spirits in particular have not only withstood the huge price increases for months, but have even been consistently cheaper since February than in the same month last year (see chart). Even vodka, which one might assume is mainly imported from Russia in addition to Poland, was more than 5% cheaper in May 2022 than in May 2021.
For example, wheat flour prices rose by 18% in the same month and vegetable oils by 22% – both as a result of the Russian war of aggression in Ukraine.
Production is often years behind
But why did spirits withstand the price crisis in the first place? The “Krone” asked inflation expert Josef Baumgartner of WIFO: “The production of spirits on sale today was often several years ago. The raw materials needed for production, such as grain, could then still be obtained at a reasonable price. purchased,” says the researcher.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
