Beer costs up 0.4% during Q2

The average cost of a pint of draught lager in pubs saw a 4.5% uptick in the year to July 2024, from £4.58 last year to £4.79, according to the latest data from the Office for National Statistics (ONS). Bitter costs increased by 2.6% during this time.

Beer​ prices jumped 0.4% overall during the second quarter of the year, between April and June, compared with 0.5% during the first three months​ of 2024.

Costs increased steadily at a similar rate year-on-year for three consecutive months, analysis of the figures revealed.

Kickstarting Q2, draught pint prices​ saw a 4.6% increase in the year to April 2024​, rising from £4.53 in 2023 to £4.75.

Draught bitter also saw price increases during this period, rising by 2.9% year-on-year from £3.77 in April 2023 to £3.88.

Cost pressures 

Moving to May, the average cost of a pint of draught lager in pubs rose from £4.56 last year to £4.77, an increase of 4.6%. Draught bitter saw a 2.6% uptick, from £3.80 to £3.90.

In June​, the data, based on figures collated by the ONS from pubs across the country, showed lager prices had again risen by 4.5% year-on-year, from £4.57 to £4.78, with draught bitter costs rising 2.6% from £3.81 to £3.91.

Looking at estimations from the first six month of 2024, the average cost of a pint of draught lager in pubs jumped 2.1% overall, rising from £4.69 in January, compared with an 8.2% uptick during the previous 12-month period.

When compared with pre-pandemic levels, a pint of lager now costs 29.4% more than it did in July 2019, with prices having risen from £3.70 against the equivalent period five years ago.

In addition, costs have rocketed by more than two-fifths (42.1%) over the past decade, rising from £3.37 in July 2014, analysis of the data by the Morning Advertiser (MA)​ revealed.

Last month, British Beer & Pub Association (BBPA) chief executive Emma McClarkin told the ​MA​ ​while pubs and brewers strive to keep the price of going to the pub affordable for all, the cost of doing business remains a “major concern” for many.

She said: “During the cost-of-living crisis pubs and brewers absorbed many of the increasing cost pressures to encourage consumers to keep supporting the trade, in many instances to the detriment of their profitability. 

Looming cliff-edge 

“However, the cost of doing business remains a major concern and unfortunately, as the latest ONS figures show, some costs have had to be passed through to customers. We cannot absorb any further increases to the cost of doing business.”

Meanwhile earlier this month, industry trade bodies collectively​ made their demands for the sector clear, including the Government making good on its pledge to reform business rates​ as well as a reduction to VAT and alcohol duty for the sector.

The trade bodies added inflation rates remained notably higher than the headline rate would suggest as hospitality businesses grapple with rising costs across the board.

In a joint statement, they said: “Hospitality continues to remain an outlier sector, with costs continuing to rise sharply compared to the rest of the economy.

“With cost increases affecting almost every venue, this vital sector is being prevented from investing in businesses and communities, which would boost economic growth and new jobs. Instead, they’re having to use dwindling cash reserves just to pay the bills.

“The clock is ticking, with a cliff-edge looming on 1 April when relief ends and rates are set to increase again. Inaction would see bills spiral yet further, putting venues under increased threat of closure.”