Stiff drinks: Booze is going up, and you can blame inflation and shipping costs
CBC
Alcohol prices in Newfoundland and Labrador will rise next month, with the province's liquor corporation saying the reason is rising inflation and shipping costs.
In to a press release Tuesday, the Newfoundland and Labrador Liquor Corporation said prices will go up by an average of 3.9 per cent May 1 but exact prices will vary by product. The change applies to beer, wine, spirits and other ready-to-drink beverages, such as coolers.
"This change recognizes the significant impact to beverage alcohol suppliers of higher costs of goods and services, increased freight surcharges, increased federal excise tax and the strain on global supply chain and logistics — increases that have contributed to Canada's most recent inflation rate of 5.7 per cent," says the statement.
Canada's inflation rate rose to 5.7 per cent in March, the highest it has been since 1991. The rising inflation rate raises the price of a variety of goods and services, including food and drinks among many others.
The cost of fuel was also a major factor in the increase, raising the cost of shipping goods to Newfoundland and Labrador and in turn raising prices.
The NLC, however, lowered the price of cannabis on April 1 by an average of six per cent because of "significant oversupply," according to the statement. The fact that all of the corporation's suppliers are in Canada negates any impact of rising international shipping costs, says the release.
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