Cheaper veggies, costlier cheers: beer and country liquor prices surge

Beer inflation is rising

Price increases across India have eased to their slowest pace in more than eight years, a cause for a toast, perhaps. But if you’re reaching out for a drink, the cheer could fade quickly as beer and liquor prices are headed in the opposite direction.

Beer prices surged 6.2 percent in July from a year earlier, the fastest pace in 53 months, while country liquor climbed 4.1 percent, the sharpest in 19 months. Inflation for foreign liquor and wine was relatively slower at 3.5 percent, but it still outpaced the broader consumer price index.

By contrast, food prices fell 1.8 percent in July, firmly into deflation territory, driven by softer prices of vegetables and pulses. The drop in food costs has helped keep inflation below 4 percent for six consecutive months

Beer prices typically rise faster in summer, a trend that has picked up strength in the post-Covid era. Beer inflation averaged 3.5 percent between April and August 2024, slower than the 3 percent for the fiscal year as a whole and 2.8 percent in the five months preceding April. In the previous year, the April–August summer average was 4 percent, well above the 3.3 percent full-year pace.