'Triple whammy' hike impacts wine prices in UK
Wine prices in the UK have increased, according to a report released by the Wine and Spirit Trade Association (WSTA).
The report states the retail price of a bottle of wine in the UK has reached £5.58, an increase of 4% compared to last year.
Figures taken into account included sales between 26 March and 17 June this year.
According to WSTA, the prices have resulted from the impact of Brexit on the pound, which led to a rise in inflation levels, and a 3.9% inflationary duty on alcohol imposed by the Chancellor in his budget this year.
As a result, the total sales volume of alcohol has reduced across both on and off trade for the last four quarters.
In addition, the Chancellor has revealed that there will be no change to alcohol taxation policy, which means that the duty on the alcohol would increase, year on year, in line with retail prices index (RPI) inflation for the duration of this parliament.
If inflation continues until the Autumn Budget, the duty on wine is expected to go up by another £0.08 a bottle, spirits by £0.29, and beer will increase by £0.02 a pint.
Wine and Spirit Trade Association chief executive Miles Beale said: “The inflationary duty rise on alcohol, at a painful 3.9%, inflicted in the March budget came on top of the effects of Brexit, the fall in the value of the pound, compounded by rising inflation.
“The latest WSTA Market Report shows that consumers are well and truly feeling the effects of the triple whammy.”