Data from the Office for National Statistics (ONS) showed the cost of a pint of draught lager in the on-trade saw a 2.8% uptick in the 12-months to October, increasing from £4.67 to £4.80. Month-on-month the figure rose by 0.2%, up from £4.79 in September.
It means draught lager costs have risen 1.9% so far this year, from £4.70 in the first quarter of 2024 to £4.79 in the third quarter of the year.
However, while the number has increased, it has risen at a slower rate than between Q1 and Q3 last year, when prices jumped 5%.
Though prices have seen a 29% hike over the past five years, with a pint of draught lager in pubs costing £3.72 pre-pandemic.
Soaring prices
Moreover, the cost of a pint has soared by 41.5% over the past ten years, climbing from £3.39 in October 2014.
The cost of a pint of draught bitter also increased year-on-year according to the figures, based on data collated by ONS from pubs across the country.
Bitter prices saw a 0.7% increase during the 12-month period, from £3.89 in October 2023 to £3.92. Month-on-month the cost of a pint of draught bitter remained flat.
It means the bitter category has seen a 1.3% upswing so far this year, rising from £3.87 in Q1 on average.
Though similarly to beer, the rate at which prices have risen in the bitter segment has slowed since last year, when costs jumped 4.3% between Q1 and Q3 from £3.67 to £3.83.
Against pre-pandemic levels, bitter prices have soared by 26%, rising from £3.11 in October 2019. Over the past decade the figure for bitter has jumped 32.4%, up from £2.96 in October 2014.
Not pretty
The previous data from ONS showed price of a pint of draught lager in pubs jumped 3.6% in the 12 months to September this year, from £4.62, meanwhile bitter saw a 2.1% uptick, from £3.84.
It comes after Chancellor Rachel Reeves announced a 1.75% reduction in beer duty for draught products as part of the autumn Budget, adding the tax relief would result in 1p off per pint of average strength beer and cider in pubs.
However, voices from across the sector criticised the move and questioned its benefits for the sector in the face of rising costs, including Hook Norton managing director James Clarke.
Clarke told The Morning Advertiser the declaration was “unhelpful” considering the increased to the National Living Wage (NLW) and Employer National Insurance Contributions (ENIC).
He said: “We’ve done some sums on the ENIC and NLW increases and it’s not pretty. The Budget was not friendly to businesses at all.
“If prices go up by 21p per pint, then we’ll net that back to 20p so customers will get the 1p, but prices are going to have to go up to cover the ENIC and NLW increase. I don’t have any principle against [increased NLW], but it will be a huge jump.”
