Tuesday, February 1, 2011
Wine Inflation: 2 buck chuck is now 4 bucks?
The wine economist has a recent post on wine price inflation. Linking to a recent paper by two IMF economists that suggests like rising oil prices the increasing wine prices are due to growing demand for emerging economies like the BRIC countries (Brazil, Russia, India, and China). As the graph above shows the price of oil and wine move together.
The wine economist suggests this might be due to the quality of wines in BRIC countries which aren't that good, although there are some surprises.
So in an effort to stimulate exports of wine to China, President Obama served visiting Chinese president Hu some fine America wines.
All that said, I find now that I have a handful of $5-7 wines I like, I'm spending less money on wine.