Beer Prices Hit By Inflation

Beer Inflation

You don’t have to be an economist to understand inflation is hitting at all levels over the past 7-10 years. The grocery store is a place where consumers can feel the pinch. Inflation just isn’t prices going up either. Another side of inflation is when the manufacturer reduces the size of the product and yet the price still stays the same.

In my household, we constantly analyze prices at the grocery store when we go to Walmart or Sam’s Club. Prices are going up and some product size is shrinking. The other night when I went to go pick up a case of beer at the local Meijer grocery I was a little shocked at the sticker sale price. Meijer is known as a fair priced grocery store and Indiana overall has stable pricing on various economic segments. The above picture is highest I ever seen. Beer prices overall have been going up in the last 3 years from my observation and if you Google the matter, you will see several articles over the last five years detailing rising beer costs.

Many factors go into the pricing of an item when it sells. Dollar value, taxes, regulation, demand or lack of, material cost, fuel, etc. I did a little research and saw some areas other than dollar weakness contributing to price increase such “hops” being down this year. Why I keep circling back to dollar weakness is because the craft beer sector has exploded which should affect the demand for typical beers. Countless sites have even stated Miller and Budweiser have lost sales over the last few years.

Just watch prices in your area and see the climb.

Pork Prices To Rise

Purdue Agricultural economnist Chris Hurt is projecting pork prices to head this summer into the mid $90 per head profit range for producers. Currently they sit around $70 per head. Excluding inflation from money printing, he states that smaller spring farrows from PEDv virus and growing foreign purchase of US pork is driving the pricing. Hurt has suggested farmers has seen this price indicator and plan to expand their pork farrows between 4-6%. His analysis also leads to lower pricing after September of this year after the $90/head profit is reached. Spring of 2015 bigger herd numbers should be seen.