THE spiralling cost of spirits is helping to keep inflation above the Bank of England’s target of two per cent.
The Consumer Prices Index stayed unchanged at four per cent between December and January.
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But alcohol and tobacco were among the largest contributions to the headline rate.
It comes as so-called gin-flation almost doubled in the six months to December.
UK drinks such as gin and Scotch whisky are the highest taxed category of alcohol in the UK, with 80 per cent of the cost of a bottle claimed by the Treasury.
The price of spirits climbed five per cent in the year to July but by December the booze inflation had soared to 8.9 per cent for the year.
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Drinks makers said the price rises were due to the 10.1 per cent duty increase imposed by the Government in August.
The spirits industry said it was time for a cut in the duty.
Copper Rivet distillery co-founder and UK Spirits Alliance spokesman Stephen Russellf said: “The Chancellor needs to cut duty in the March Budget to prevent further unnecessary pressure on household budgets.
“Bringing duty down would be good news for consumers grappling with spiralling costs as well as good news for a hospitality sector facing almost daily news of venues closing with low footfall.”
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He added that it would be good news for distillers after last year’s record tax hike.
More than £12 is taken in duty for an average-price 3 one-litre UK bottle of spirits but in France the figure is £6.45. and in Spain it is just £3.32.
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