Beer price on the rise: Why is it going up and when will it go down?

The prices of the products are increasing more and more and the beer does not escape the economic crisis. According to the National Institute of Statistics and Informatics (INEI), the alcoholic beverage and tobacco segment in Metropolitan Lima had an interannual increase (from June 2021 to May 2022) of 1.68%.

Only in the field of beerthe annual increase to May was 1.07%, indicated the technical report on the variation of consumer prices of the INEI.

In some wineries in the capital, the 630 ml beer, which was sold per unit at S/ 6.00, now costs more than S/ 7.00 and in stores the price exceeds S/ 10.00.

A few months ago, the large beer producers had announced that inflation will weigh on the price of alcoholic beverages.

Why does the beer go up?

According to Marco Vinelli, former director of Agro Rural and director of the ESAN Master’s in Agribusiness Administration, the increase in the price of beer is due to the fact that we are in a context of inflation where the supplies of this alcoholic beverage and the freight of their distribution have ‘soared’.

“On the supply side, the world prices of inputs, such as barley, corn and hops, have increased due to the shortage of fertilizers. Also for its distribution there is an increase in maritime freight by 200% compared to previous years”, said the expert.

He added that on the demand side, now that various sectors have reopened, there is more beer consumption. “That makes producers increase their prices”, he referred.

Will the price of beer go down?

The specialist estimates that the price of beer will not fall until 2024, because inflation continues not only in Peru, but throughout the world.

“Only prices will go down, according to my forecast, to the year 2024″, he told this medium.

Despite this rise in the price of beer, Vinelli believes that demand will not decrease.

“We spent more than a year in confinement and many businesses have closed and today that we can go out without fewer restrictions, the demand has increased. I do not see that the price increase in this product reduces the demand”, he pointed out.

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