Beer prices in London have hit an all-time high, here’s why

The price of a pint of beer in the UK, a popular proxy for living costs, has risen more than 70% since the financial crisis of 2008, with prices hitting £8 ($10) for the first time in London.

As reported by the Financial Times, which cited a research report by industry tracker CGA, the average price of a pint in the UK rose from £2.30 in 2008 to £3.95 in 2022, driven by a combination of factors.

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Additionally, the CGA report found that the price of a pint had hit £8.06 at an unnamed pub in London. Notably, this price tag is the most expensive pint of beer ever recorded by the CGA, which has surveyed more than 5,550 random clubs and pubs in the UK.

On the other side of the spectrum, the cheapest pint found in the CGA survey was in Lancashire, where a pint cost £1.79.

Financial Times further reported that if the average price of a pint soared as per inflation rates between 2008 and 2022, the price of a pint would have been £3.35, less than the current average price.

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This suggests a combination of factors at play behind the price rise, including the ongoing war between Russia and Ukraine. While the war has indeed contributed to a general rise in inflation, courtesy of rising energy prices, it has also led to a rise in barley prices, as Ukraine is the world’s fourth largest producer of the crop. In light of the situation, analysts Bernstein have warned the cost of malting beer could increase by as much as 70%.

Additionally, pubs, which were hit hard by the COVID-19 pandemic, have also seen an increase in food and drink prices since reopening in 2021, exacerbated by delays in cross-channel supplies to the UK since Brexit, as well as by shortage of staff.