The average price of a pint in London has topped £8 for the first time, according to research by consultancy CGA. In one unnamed pub in the capital, the average pint cost £8.06, the highest ever recorded in CGA's survey of over 5,550 bars and pubs.
Nationally, the average pint price has risen by more than 70% since 2008, from £2.30 to £3.95. If prices had only followed inflation between January 2008 and April 2022, a pint would cost £3.35, the Financial Times reported.
The price hikes are driven by a combination of factors, including inflation and the war in Ukraine. Ukraine was the world's fourth largest producer of barley, a key beer ingredient, and analysts warn malting barley costs could rise by 70%. UK inflation recently hit 9%, with the Bank of England governor warning it will reach a four-decade high later this year.
Pubs are also grappling with higher food and drink supply prices, exacerbated by Brexit-related cross-channel delivery delays and staff shortages. Many landlords have raised wages to attract workers, further squeezing profit margins.
Brewers and pub companies have already increased prices: Adnams warned of hikes due to barley costs, Marstons raised prices by 8% in March, and Greene King customers pay 5% more per pint on average. City Pub Group chair Clive Watson told the FT that ingredient costs are up 10%, wage inflation is 7%, and electricity costs have risen 100%, pushing the price of a pint up 12-13%.
