Wine and liquor prices are increasing just in time for the holidays

• Wine and liquor is more expensive now than a year ago.
• The reason, like so many other recent retail price hikes, is the ongoing supply chain crisis.

Wine and liquor prices are rising, and they're likely to increase as the holiday season continues.

That's according to the US Labor Department, which released data last week that showed a 1% year-over-year increase in the cost of alcoholic beverages in the United States.

Worse: Distillers say that the prices are going to continue going up over time as a result on the ongoing supply chain crisis. Like so many other consumer goods, the prices of liquor and wine are expected to rise as supply chain issues continue to ripple throughout the economy increasing costs for everything from shipping to bottling to raw materials.

"Get your spirits while you can because prices are going to have to go up," California Artisanal Distillers Guild VP Ryan Friesen told the Los Angeles Times.

Thus far, producers have absorbed as much of the cost differences as possible rather than passing those increases to consumers — but that's not sustainable in the long run, according to Friesen, who is also the head distiller at Blinking Owl, a distillery that makes vodka, gin, whiskey and aquavit.

"If we're absorbing...an extra 100% increase in our freight costs, for example, we can't take that hit forever," he told the LA Times.

Those increasing costs are at least partially due to the ongoing supply chain crisis that was sparked by the pandemic, and it has impacted every component of the international supply chain. Ships carrying goods are backed up at ports, resulting in shortages of various items, which causes price increases.

Everything from basic commodities, like alcohol, to larger ticket items, like furniture, have been impacted, and price increases are just one symptom of a global issue that isn't expected to resolve anytime soon — estimates put 2023 as the earliest possible time for a resolution.

In the meantime, you may want to stock up on your favorite booze before the price goes up.

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