Brexit has pushed up the price of a bottle of wine to an all-time high, according to a study by the Wine and Spirit Trade Association (WSTA)
The average price of a bottle sold in the UK in the 12 weeks to 25 March 2017, passed £5.50 for the first time ever, up 10 pence from the same period last year.
The WSTA blames Brexit, which saw the value of the pound plummet and push up the cost of imports, leading to rising inflation. This consequently led to a 3% increase on wine prices in the 12 weeks to the beginning of 2017.
There is further sobering news for wine lovers as forecasts predict that prices will continue to rise in the coming months due to a triple whammy effect of Brexit, inflation and duty increases.
The latest figures do not take into account of the 3.9% rise on alcohol duty announced by the Chancellor in March. This will add another 8p to the average bottle of wine.
WSTA chief executive Miles Beale said: “Last year the WSTA predicted that Brexit and the fall in the value of the pound, compounded by rising inflation, would force the UK wine industry to up their prices. Sadly this is now a reality as an average priced bottle of wine in the UK is at an all-time high.
“Unfortunately, for both British businesses and consumers, we are clear that this is not a one-off adjustment, but rather that wine prices will continue to rise. What is even more concerning is that this does not take into account the inflationary duty rise – at a painful 3.9% – on alcohol inflicted by the Chancellor in the March Budget.”
The UK accounts for nearly 15% of the world’s wine imports and the industry directly employs 172,000 people in the country.
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