Beer prices are up while the economy is down. Go figure.
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Get the sense that prices on your favorite beers are inching ever higher, even as the economy pinches your personal holdings?
Good news! You are NOT crazy. Beer prices are, in fact, going up on average.
Beer’s “consumer price index” (a measure of inflation) was up 4.4 percent in June compared to the same month a year ago, according to the U.S. Bureau of Labor Statistics. Beer’s CPI was also up by a fraction of a point compared to May.
“We consider the result evidence of continued price leadership by Anheuser-Busch InBev and MillerCoors,” said Stifel Nicolaus analyst Mark Swartzberg. In other words, those companies hung onto their prices even as pricey imports fell through the floor. That gives cover to other brewers to raise prices as well.
“Beer prices remain amazingly healthy overall” so far this year, according to Beer Marketer’s Insights. That’s true even though the overall industry is declining slightly and consumers are trading down to cheap beer. Beer’s consumer price index is up 3.7 percent for the first six months of the year, Insights reported.
Beer prices have traditionally gone up less than inflation, Insights noted. However, beer is narrowing that gap as brewers hang onto price increases. Whether that’s sustainable in a bad economy is a key question. Stay tuned.
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Jeremiah McWilliams is a native Virginian who came to the Post-Dispatch in early 2007 to cover beer and other consumer products. He previously covered manufacturing for the Virginian-Pilot newspaper in Norfolk, Va. He is a graduate of Washington and Lee University. 
No surprise here. Between the leveraged debt of ABInBev and MillerCoors, they have incentive to keep pricing high. And as you’ve already pointed out, in tight times there’s flight from more expensive brands, not to mention the tendency to drown your sorrows at relative economic misfortune.
Opportunistic, but not surprising …
Has any one else notice that since the Inbev takeover that Bud and Bud Light are cheaper in St Louis? or at least are on sale more often.
At least it’s still affordable to drink beer at Busch Stadium (obvious sarcasm). $8.75 for a 16oz draft beer is ridiculous. That same beer costs .80 cents at any gas station. Good thing we live so close to the brewery. What a joke. Busch Stadium should be ashamed of itself.
This is no suprise. Alcohol sales don’t vary greatly. Good economy or bad economy. People drink in a good economy to celebrate and drink in a bad economy to drown their sorrows.
Lets see…last year when gas was $4 a gal. prices went up. Gas is now around $2.50. Anybody notice beer prices coming back down? Or any prices for that matter?
FYI-18 packs-Miller Light-BOTTLES!!!!-$9.99 at QT’s-A really good beer at a really good price!!
Got a 20 pack of Bud Light for $11.99 on Saturday.Not too bad
Jason,
Went to Cincy and KC to watch the Cards this year just so you know every major league team charges about $9 for a beer. It’s what they do, it’s a captive audience, thousands of people PAY IT. I never understand why people complain about the price of beer at a sports, concert or theatre venue, you know going in it’s 100 times what it should be, everything at these venues is way more then the item actually costs. Do you go to a bar and pay 3.50 to 4.00?
If you don’t like it don’t buy it. If all the bitchers stop buying it I bet the price would come down.
I buy Busch if I can catch a 30pk on sale, but lately I’ve been getting a 12pk of PBR at Shop ‘n Save for $5.77 everyday price.
Looking at the shady politics played by both sides in DC, the state of the economy and health care would make one drink constantly – give me a IV hookup.
Like InBev or not the beer is still brewed here in St. Louis and they still employ St. Louis workers so until they physically move the operations you have to be crazy to buy other brands unless the quality of beer changes….Just my opinion.