While there won’t be a day without sky-high gas prices raised, inflation is on the horizon for other regions as well – most notably, wine served when dining out, and eventually even wine shelves.
Inflation has caused the cost of many groceries to soar over the past year. Grocery prices in the U.S. rose nearly 10 percent between 2021 and 2022, the U.S. Department of Agriculture found, with larger increases for some products. Eggs are now 22% more expensive, while a pound of bacon is 17.7% more expensive than last year.
While the wine people are buying in stores has seen only single-digit inflation (a Wells Fargo report found it will only grow 5.6% from 2021), restaurants in particular have been raising prices for wine by the glass and by the bottle.
Prices rise ‘up to 20%’
“While wine prices are relatively stable compared to soaring fuel and grocery costs, we are now seeing wine at the crossroads of enormous inflationary pressures,” said Mark Oldman, founder of Bevinars Tasting Club. The price increases have been more aggressive, with some high-end restaurants raising prices by as much as 20%.”
In a survey of more than 500 wine drinkers, Bevinars found that almost half reduced the amount of wine they consumed after seeing prices rise in stores and restaurants.
And many more opted for cheaper wines than they had previously ordered – sometimes that meant local rather than imported bottled wines, and in other cases some aficionados had been derided as “cheap” boxed wines.
“I hate that our favorite $15 wine is now $20,” one survey respondent told Oldman. Other money-saving tips reported in the survey include finding budget tags and doing BYOB more frequently.
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If current trends continue, wine will only get more expensive.
Inflation is no joke
But while it’s an unpleasant surprise to find out that a favorite bottle of wine is now more expensive, inflation has a bigger impact in other areas.
A recent study by Breeze, an Omaha-based insurance services company, found that 88 percent of consumers cut back on spending in some form because of inflation.
About 73% of U.S. households have cut back on restaurants and takeout, 63% on consumer spending, 62% on social spending, 57% on groceries, 44% on gas and 35% on debt payments.
One area where inflation is strongest is in what is often considered the “cheapest” option. Fast fashion clothing companies such as H&M (HNNMY) And Zara cited rising material costs as the reason for its multiple price hikes.
Grocery costs at dollar stores surge 14.3% and 22.5% from 2021 and 2020, respectively. In comparison, online grocery store prices rose just 12.4% from 2020.
Meanwhile, dollar store and discount chain traffic has peaked—compared to 2019, Family Dollar saw a 20.4% increase in foot traffic and a 34.1% increase in under five foot traffic (five) – get five below company reports.
This suggests a worrying pattern for those already living on the cheapest option due to low incomes, as inflation spreads, traditionally cheap things become less cheap, with hundreds of Ten thousand people feel the austerity and the country becomes more nervous.