Price of beer on rise for Christmas
BEER drinkers could be paying up to $10 extra per case this Christmas, as production costs skyrocket.
Queensland University of Technology marketing professor Gary Mortimer said three compounding factors were causing beer price hike.
“One is the impact to barley crops across the eastern seaboard inundated by flooding and high rainfall,” he said.
“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 excise applied every six months, which is currently 3.8 per cent. It’s a triple whammy.”
Professor Mortimer said beer drinkers would be paying $5 to $10 extra per case because of the increased costs.
But it’s not just beer Australians will be forking out more for – the cost of fresh fruit and vegetables is also being impacted by recent wet weather and flooding.
Professor Mortimer said while fresh fruit and vegetables should be more readily available in the lead-up to Christmas, other festive favourites like stone fruit might be harder to source.
“It’s going to be a tough Christmas for everyone,” he said.
“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 Professor Mortimer’s prediction that food prices would stabilise in 2023 offers some hope for shoppers.
“We’ll hopefully stabilise with 6-8 per cent inflation across the board,” he said.
“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.”