Cost Of Getting Hammered In UK Soars 70% Since 2008
Brits are the most miserable in years as the headline inflation rate is at a four-decade high. Turbulent economic times pressure household finances, leading some to drown their miseries at the local pub.
But even at the pub, it’s hard to escape today’s disastrous macroeconomic backdrop of soaring inflation and slowing economic growth, with threats of stagflation as the Bank of England hits the brakes on the economy with rate hikes.
FT cites new data from food and drinks research company CGA that shows patrons of pubs are being hammered not by the drinks but by soaring costs for the average pint of beer, up 70% since the 2008 financial crisis.
CGA monitors beer prices at UK’s 90,000 bars and pubs. Data shows the average pint cost jumped from £2.30 in 2008 to £3.95 this year. The latest price increases are due to skyrocketing barley, energy, and labor costs. There are even risks of energy shortages and rolling blackouts later this year.
When it comes to the most expensive pint, a pub in London was selling beer for £8.06. The least expensive pint was in Lancashire at £1.79.
One of the major drivers of beer prices in the UK is the soaring cost of barley. Analysts at Bernstein recently said barley costs are a “big negative” for brewing companies, estimating that “a realistic worst case would see malting barley inflation of approximately 70%” this year.
Pub owners, small and large, have said a combination of ingredient costs, wage inflation, and rising electricity bills could continue pushing up the price for a pint of beer.
Meanwhile, increasing recession risks and high inflation have made Brits the most miserable since 1994.
More Brits than ever might have to drown their miseries at home rather than in local pubs because of soaring prices, considering their household incomes have been obliterated by the inflation storm.
Sun, 06/05/2022 – 07:35