Beer prices rise in face of weak pound
Heineken and Carlsberg have hiked the prices of beer as brewing businesses are warned about forthcoming Brexit related inflation.
According to the Guardian, Carlsberg said it will be increasing prices by 2.6%, while Heineken will be adding 6p to every pint.
The two beer companies follow MolsonCoors, which makes Carling, and ABInBev, maker of Budweiser who raised their prices earlier this year.
Brigid Simmonds, chief executive of the British Beer and Pubs Association (BBPA), told the Guardian that beer inflation could rise if the pound remains low.
She said: "Beer in the UK is made predominantly using domestic raw materials. However, the depreciation of sterling certainly means there will be some inflationary pressures through increased costs such as raw materials, packaging, energy and transport costs as well as employment and other cost pressures all businesses face.
"It is also a concern that higher inflation will also lead to higher levels of indexation for taxes like beer duty, creating a vicious circle when it comes to cost pressures, which is why we are urging the chancellor to cut beer duty on a pint by one penny in the budget."
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