Central banks around the world have kept interest rates low. Very low. And markets around the world continue to rise with no end in sight.
Prolonged low interest rates usually mean inflation but we have not seen that in the US economy even while unemployment stands at near record lows. So what gives?
Your guess is as good as mine.
As far as the wine industry is concerned, one issue that may have an impact on the world consumer markets are the fact that the three largest wine producers (Italy, France, and Spain) have had a down year in terms of yields and production for 2017.
And in the US, the state of California has had wildfires in the prime grape growing areas of Napa and Sonoma Valleys.
While some of the other areas around the world such as Australia and Argentina have had decent yields, it is doubtful that their production will have any big impact on the overall price of bulk wines around the world.
But of those who have the income and desire to spend money on high end wines, one can expect that the price of these will rise especially with the 2017 vintage.
It will be interesting to see how this all plays out and if consumers, given the boost they receive with tax cuts, decide to upgrade their wine cellar and spend some of their disposable income on luxury wine!