Inflation surges on wine and spirits

13 December, 2011

Inflation on wine and spirits has leapt up in the past month, according to the Office of National Statistics and the Wilson Drinks Report.

Inflation on wine increased from 2.4% in October to 6% in November, while inflation on spirits increased from 4.7% to 6.8%.

Meanwhile inflation on beer fell for the fifth month in a row.

WDR managing director Tim Wilson said: “Of course we welcome the overall drop in inflation from 5.2% in September to 4.8% in November. However the news is not so good for alcohol drinkers, as the rate of inflation on most types of drink continues to track above the All Items index.

“The official press release from the Office for National Statistics specifically highlights food and non-alcoholic drinks as one of the main reasons for the fall in the overall rate of inflation. However, our analysis shows that coffee, tea and cocoa are still rising at more than 10% a year.” 

He added: “Our analysis also shows that increases in duty and VAT have increased the price of wine by about 5% over the past 12 months. We estimate that the duty escalator will add a further 15p to a bottle of wine in March 2012, taking the average bottle very close to the symbolic £5 barrier for the first time.”

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