Beer drinkers may very well be paying as much as $10 per case further this Christmas, as manufacturing prices skyrocket.
Queensland University of Technology advertising and marketing professor Gary Mortimer stated three compounding components had been inflicting the spike in beer costs.
“One is the impact to barley crops across the eastern seaboard inundated by flooding and high rainfall,” he advised NCA NewsWire.
“That means there’s less raw materials to move into production.
“The second reason is the increased production costs, including higher prices for water, electricity and fuel for logistics.
“And finally the alcohol excess applied every six months, which is currently 3.8 per cent.
“It’s a triple whammy.”
Professor Mortimer stated beer drinkers would paying $5 to $10 further per case due to the elevated prices.
He instructed these nonetheless wanting to purchase beer for Christmas ought to take into account mid-strength and even alcohol-free choices as a result of the alcohol extra is utilized in another way and should scale back prices barely.
And it’s not simply beer going through worth hikes, with the price of contemporary fruit and greens additionally being impacted by latest climate situations and flooding.
Professor Mortimer stated whereas contemporary fruit and vegetable ought to be extra available within the lead-up to Christmas, different festive favourites like stone fruits is perhaps tougher to supply.
“It’s going a tough Christmas for everyone,” he stated.
“It’s not just the logistic costs of moving items around the country, but we’ve got a lack of pickers. We don’t have international labour around the country.
But there’s some hope for shoppers, with Professor Mortimer forecasting food prices to stabilise in late 2023.
“It’s a long journey,” he stated
“We’ll hopefully stabilise with 6-8 per cent inflation across the board.
“Hopefully, the war in Ukraine will resolve itself, but there will be a lag in that before we see fuel prices fall.
“Plus when international backpackers and students start to flood back into the country, we’ll start to see food delivery costs improve because of the increased workforce.”
Originally printed as Beer, fruit costs enhance after moist climate wreaks havoc on manufacturing prices
