Inflation Notes: Cold Duck

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Squeezed by the fast-rising cost of living, U.S. consumers are turning to cheaper models, thrift-type goods and do-it-yourself repairs on their homes and autos. In a sluggish retail market, sales of retread tires, home-barbering kits and sewing machines have lately shown substantial increases. The trend has even affected holiday celebrations. Last week the fastest-moving item in many U.S. liquor outlets was Cold Duck,* a mixture of domestic sparkling burgundy and champagne that generally sells for from $2 to $3 a fifth compared with about $5 for domestic vintage champagne.

The nation's thirst for Cold Duck began to rise last August. The product's popularity quickly spread from California to Washington, D.C., Chicago and New York, from downtown to affluent suburbs. Last week some New Jersey stores ran out of the concoction entirely. Whether they were moved by the fad or frugality, New Year's revelers decided that Cold Duck was just the tipple with which to see out the inflationary old year and toast in the uncertain new one.