Champagne prices to bubble up in '08

SCARSDALE, N.Y., Dec. 31 (UPI) -- People wanting to taste the good life, such as sipping pricey Champagne, might to do so now as U.S. analysts say luxury items will cost more in 2008.

Observers said they expect prices for luxury goods imported from Europe to rise next year, USA Today reported Monday. That $100 bottle of sparkling wine from the Champagne region in France, for example, could cost between 5 percent and 30 percent more in 2008.

"This is the last call. I don't think we'll see Champagne at these prices for a long time to come, if ever," Jeff Zacharia, president of national retailer Zachy's Wine and Liquor in Scarsdale, N.Y., told USA Today.

One reason is the U.S. dollar's decline against the euro. Also, demand is high worldwide and the Champagne region in France is maxed out production-wise.

U.S. retailers resisted price increases in 2007, USA Today reported, but absorbing losses are likely to end early next year.

"January, February and March are often the times when (holiday) discounts come off. It is also the time when Champagne houses set prices for the coming year," Sam Heitner, director of the Office of Champagne U.S.A., the industry's promotional arm, said in the USA Today article.