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Beerflation: How Inflation is Making Craft Beer More Expensive

Beerflation: How Inflation is Making Craft Beer More Expensive
Feb 25, 2022 · 4m 4s

In this episode we’ll be talking about Beerflation: How Inflation will eventually make your favorite craft beer more expensive (if it hasn’t already). Well it looks like our worst fears...

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In this episode we’ll be talking about Beerflation: How Inflation will eventually make your favorite craft beer more expensive (if it hasn’t already).


Well it looks like our worst fears are coming true: inflation is no longer temporary, or what economists have been calling transitory. No, inflation is here to stay. For how long though still remains to be seen.

Inflation news is ever-changing, but at the time of this recording inflation jumped its fastest pace in nearly 40 years last month to a whopping 7%. Cars, gas, food, and other commodities saw substantial price hikes. This is starting to worry many Americans — and this fear isn’t misplaced.

We can point to many things contributing to inflation right now. Supply chain backlogs, labor and raw material shortages, pandemic fears, wage increases, and even some of President Biden’s recent economic policies are to blame. What’s more, most Americans think Washington DC isn’t doing enough to stave off this new expensive reality.

If this problem’s left untouched, the American dollar will be worth less and less over time. This means your money won’t go as far, easily draining savings accounts and hampering overall economic progress for everyday people.

The Federal Reserve is left with no choice but to raise interest rates. In an attempt to curb inflation Fed chair, Jerome Powell, told Congress, “If we see inflation persisting at high levels longer than expected [and] we have to raise interest rates more over time, we will.”

Powell even hinted they might raise rates as early as March, and up to three times this year. (Ouch). But many wonder if this government action is too little too late, or simply not enough to tackle a mounting concern like this one.


With that being said, we most certainly can expect inflation to affect our favorite craft beer prices soon (if it hasn’t already). Wage increases for brewery employees, higher costs for raw beer ingredients, greater transportation and distribution demands, and slower turn around of parts for brewery equipment will all contribute to more expensive craft beer.

Craft breweries will inevitably pass this extra cost onto the customer. Likely this will either be through raising prices for the same size beer, or keeping prices the same but beer offered in smaller fluid ounce sizes. Any way you pour it, beer is going to get costlier.

And this won’t be the breweries fault either. Prices are going up everywhere, just look at your local grocery store. Craft beer is merely collateral damage in a much bigger economic problem. (Sniff sniff, I’m not crying).

But don’t worry, craft beer isn’t likely to go anywhere anytime soon. These days imbibing great beer with even better community is practically an American pastime. It’s an easy, accessible, and fun way to escape the woes and throes of inflation — a chance to just live in the moment. Just don’t make it an excuse not to drink responsibly.

Let’s keep calm and drink beer. Here’s to hoping this whole inflation thing gets sorted out sooner than later.

Next episode we’ll talk about Monster Beverages’ plan to enter the craft beer game.


Until then, cheers to beers.
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Author Libation Nation
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