The founder of beer brand Cobra has warned that "there's no running away" from the reality that the price of alcohol is set to rise.
Lord Bilimoria told BBC 5 Live's Wake Up To Money programme that the increase in cost to consumers would be a "necessity" as companies continue to be squeezed by inflation, interest rates and tax increases.
UK inflation has already hit a 30-year high of 5.4% and that figure is expected to soar to 7% by April.
With rising energy prices also impacting on all businesses, the Cobra chairman, who is also president of the CBI employers' group, said: "Our input costs in every way - bottling, energy - are up.
"Freight costs have soared, sometimes ten-times. Wages are increasing and on top of that there are labour shortages.
"It does mean that businesses have to put up prices. But the consumer is already feeling the squeeze. It is a really challenging situation for everyone."
Lord Bilimoria also stated his objection to the Government's planned National Insurance rise in April.
"This is completely the wrong time to do this," he declared. "It will stifle investment. It will stifle growth."
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