Balsamic vinegar prices to soar by '25pc' Bad weather last year in key wine regions, such as in France and Italy, caused global wine production to fall to its lowest level since 1975. Suppliers are now warning that low stocks are likely to result in higher prices for all wine-related products, including balsamic vinegar, made from Trebbiano grape juice and used for salad dressings dips, marinades and sauces. In November, specialist retailer Majestic Wines, which has an average selling price of £7.46, warned that shoppers could face sharp increases in the cost of a bottle of wine. Steve Lewis, chief executive, said he expected a rise of between 50p and £1 a bottle in early 2013. Europe's wet summer was not the only blow to global production in 2012. Grape-growing regions in Argentina have also seen adverse weather, meaning an estimated 22pc fall in crops for 2012. The International Organisation of Vine & Wine (OIV) estimated last year that global production would fall by 6pc to 248.2m hectolitres - the lowest level since at least 1975. UK tax increases are also expected in 2013 with the "duty alcohol escalator," which was set up towards the end of the previous Labour government, due to increase duty on wine by 2pc above the rate of consumer prices index inflation, currently running at 2.7pc. Grapes have not been the only crop to suffer from bad weather. China's inflation rose sharply in December, it was announced last week, after a cold winter lead to a 15pc rise in vegetable prices. UK households, which are already coping with stagnating wages and austerity measures, including child benefit cuts that kicked in last week, also face the prospect of rises in staple foods. Earlier this month, the managing director of Waitrose warned that Britain's recent food price rises were "just the tip of the iceberg," and consumers should brace themselves for "massive" increases in some commodities this year. Aside from disrupted supply due to unpredictable weather, global demand for food and other resources is growing at breakneck pace because of population growth and increasing wealth in the most populous countries such as India and China.