The inflation It is not just a Chilean problem. The sharp increase in prices is a phenomenon that is affecting a large part of the world’s economies and the most worrying part is undoubtedly the increase in the value of the food.
And it is precisely this increase that is putting pressure on a product that, although not essential, is very popular in Chile and throughout the world: Beer.
According to Beer Index made by the investment platform eToroThe cost of producing beer has soared 62% in just two years, in what appears to be a perfect storm for rising prices.
Sure because eToro’s ‘Beer Index’ (simple weighted index) is based on current spot prices for a basket of six commodities needed to produce and sell beer: wheat, barley, rice, malt, aluminum (for cans) and gasoline (for transportation and agriculture).
Gasoline (which in Chile is at record highs after a one-year cycle of uninterrupted increases) is the input that has had the greatest impact on the price of beer, with a jump of 138%.
In the case of barley, the increase is 104% and in malt 87%. And in this the war has had a great impact since Russia and Ukraine supply up to 30% of world barley exports.
The news is not the best if you consider that in a few more months the World Cup kicks off, a month-long event that is closely associated with beer consumption.
Ben Laidler, Global Markets Analyst at eToro, explains that “the average price of a pint of beer has increased by 8% in the last two years, four percentage points below the general rise in inflation. However, our beer index tells us that stronger price pressures are building and further price increases could be expected.”