French wine price rises likely to be restrained

Devotees of fine French wine can relax, your favoured tipple should not become significantly more expensive over the coming year.

Lovers of Burgundy, Bordeaux and Champagne have had to put up with the cost of their drinks rising inexorably over recent seasons, but merchants anticipate that the 2012 vintage will see prices either stabilise or rise by only modest amounts.

Difficult weather earlier in the year will reduce the quantities available from some top producers, which normally would point to consumers being asked to pay more.

But the impact of reduced supply is being offset by the uncertain global economic backdrop and there has been little advance buying by speculators gambling on prices rising strongly between this year's late harvest and the first of the vintage coming to market.

"The first indications of the actual prices people are willing to pay will not be available until mid-November but there are no signs of a frenzy," said Nicolas Ozanam, a director of UMVin, a trade body which represents the producers of 70 per cent of France's wine output.

"The current climate certainly won't encourage anyone to put their prices up without first knowing what the demand is like."