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Duty hike will push average wine price over £5

Published:  20 March, 2012

The average price of a bottle of wine will breakthrough the symbolic £5.00 barrier after a rise in wine inflation and the next set of duty increases, according to the Wilson Drinks Report.

The latest inflation figures published today shows the rate of inflation on most types of alcoholic drink has risen significantly since December 2011.

That alongside the expectations the Chancellor will increase alcohol duty again in the Budget, will add "further misery to responsible drinkers", said Tim Wilson, managing director .

According to analysis by the Wilson Drinks Report, WDR, inflation on spirits jumped from 2.0% in January to 11.2% in February, whilst inflation on wine increased from 3.0% to 5.4%, with inflation on beer has more than doubled from 3.6% to 7.7%.

Wilson, added: "Of course we welcome the overall drop in inflation from 5.2% in September 2011 to 3.4% in February 2012.

"However the news is not so good for alcohol drinkers, as the rate of inflation on most types of alcoholic drink rose significantly above the All Items index."

Tim Wilson added : "Our analysis also shows that the combined effect of changes in duty and VAT have increased the price of wine by about 5% over the last 12 months.

"The average price of a bottle of wine will breakthrough the symbolic £5.00 barrier as soon as the next set of duty increases flow through to consumers."

The official press release from the Office for National Statistics also highlights the spirits category where monthly prices fell in February 2011 but increased in February 2012.

There was better news, however, for adults who eat out as inflation on restaurants and cafes fell for the 5th month in a row and from 4.8% in December 2011 to 3.5% in February 2012.

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