Is inflation coming for after-work beers?

Group of laughing friends drinking beer at restaurant patio table.

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Higher prices mean that people buy less beer.

the main points

  • Inflation is coming down, but beer prices have jumped more than many other items in recent months.
  • The cost of ingredients such as hops and malt has gone up, as have other beer-making costs.
  • Reducing alcohol consumption can save you money.

There are some signs of this Inflation may be cooling, or at least get out of the boiling point that we saw in last year’s points. However, the slowdown in price rises does not affect all of our spending equally. In fact, the prices of some items – such as beer and… Even eggs It keeps rising even while others are falling.

An analysis of Nielsen data by Bump Williams Consulting showed that average beer prices rose more than 7% in the 12 weeks before Christmas, more than they had been in the previous year. The cost of some brands, such as Bud Light, Miller Lite, Yuengling Lager and Coors Light, increased by up to 10%.

Data from the Bureau of Labor Statistics backs this up. House beer prices were 1.8% higher in November than in October, while regular food prices rose only 0.2%. This was a much larger price jump than other alcoholic beverages in the house. Wine prices were actually down 0.2% month over month and spirits were up just 0.9%.

Why is beer getting more expensive?

There are a few reasons why your favorite beverage may cost more than it did six months ago. For starters, the industry isn’t immune to supply chain issues and high energy prices that have affected other products. Moreover, the cost of hops has gone up due to drought in some parts of the world, and the conflict between Russia and Ukraine has affected barley production.

Another problem for smaller brewers is the cost of cans. In November, the largest supplier of cans in the United States announced significant changes to minimum order requirements and warehouse inventory terms. September also saw a shortage of carbon dioxide, another key ingredient for some breweries.

Higher prices have already led to a decline in consumption. Beer is often considered anti-stagnant, especially at home. It’s one of those little luxuries that people may keep buying even as they cut back on larger expenses like vacations or a new car. However, recent price increases have proven to be too much for some consumers who bought less in December. Bump Williams Consulting said Michelob Ultra premium beer sales rose 0.8% over the year, but fell 2.3% in the month leading up to Christmas.

Everything in moderation

I am British and drinking is so ingrained in our national psyche that it almost pains me to write this. But beer is not a staple. In fact, even if beer prices don’t go up, cutting down on after-work drinks — whether at home or at the bar — can be a good way to go. Saving Money.

The trick to any money saving plan is to make it achievable. If one of the things that brings you joy is going out for a couple of drinks with friends or popping open a craft beer on the house, don’t cut it out completely. You will be miserable and may end up spending more money as a result. Instead, look at your budget and determine what you are spending on beer now and what a reasonable beer budget is.

You may be able to cut costs by switching to a lower cost brand, or reducing the amount you drink. You might already be trying a dry January, which some say is good for both Bank account Balance and health. Let’s say you usually spend $15 a week on alcohol. If you decide to give up alcohol completely, you can save $780 per year.

It might be more realistic to try to bring that number down to $10 a week instead. A $5 reduction in spending could mean an annual $260 increase in your account saving account. You won’t be paying for a new car, but it may help protect your finances a bit against economic uncertainty.

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