Italys Wine Prices Fall as Inflation Rises

Producers struggle to pass higher costs on to shoppers in a weak consumer market

In Italy, wine prices continued to fall in March even as inflation picked up, underscoring a weak consumer market and the difficulty producers face in passing higher costs on to shoppers.

The Unione Italiana Vini said that consumer prices for wine were down 2.1% from a year earlier, while overall inflation rose to 1.7% from 1.5% in the previous month. The group pointed to higher energy costs and more expensive food as the main forces behind the broader increase, with food prices up 2.8% and the shopping basket of everyday goods up 2.2%.