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War in Ukraine pushing up beer prices

The Finnish brewers' association wants to lower alcohol taxes to offset ballooning production costs.

Beer is getting more expensive, Finland's brewers' association warns. Image: Kalevi Rytkölä / Yle

The price of a pint of beer in Finland is likely to increase, says the Federation of the Brewing and Soft Drinks Industry, referring to rising ingredient and production costs.

"It will inevitably show up in prices at some point," Tuula Loikkanen of the federation told Yle.

Electricity and malt are central to the brewing process.

Malt producer Viking Malt said barley prices, like those of other grains, have risen since Russia invaded Ukraine.

The cost of growing wheat in Finland has risen 114 percent since last year, Statistics Finland said on Friday. The agency said that in addition to the war in Ukraine and rocketing production costs, dry weather was also impacting the harvest, as it has in many other countries.

"If we compare prices to one year ago, we're definitely at a higher level. Wheat and barley prices have nearly doubled," explained Christian Tallskog, a sourcing manager at Viking Malt.

To counter rising production costs, Loikkanen has suggested that Finland lower its tax on alcohol.

Total alcohol consumption in Finland peaked in 2005, when 12.1 litres of alcohol were consumed per head of population above the age of 15, but has been in steady decline since then.