The revelation that the average price of beer in Prague’s restaurants and pubs reached 64 crowns (2.66 euros) in July may not have shocked the city’s residents, who take pride in their beer culture. Beer prices have been on a steady incline for several years, a trend that has intensified since the onset of last year’s cost-of-living crisis.
Regrettably for Czech beer enthusiasts, this upward trajectory is expected to persist as a confluence of factors, including VAT hikes, labor and hop shortages, and elevated inflation, threaten to propel prices beyond the 70-crown mark. This unsettling development compounds the woes of budget-conscious beer consumers and potentially darkens the mood of the population.
On August 31, the Association of Small and Medium Enterprises and Tradesmen of the Czech Republic (AMSP) revealed that, based on data from cash register systems, the average price of a half-liter of 12-degree beer (approximately 4.2 percent alcohol) in Prague’s restaurants and pubs in July had risen to 64 crowns, marking a 9 percent increase compared to the previous year. Across the entirety of Czechia, the average beer price in July stood at 54 crowns, up from 50 crowns a year earlier. A decade ago, the average price was a modest 30 crowns.
The crux of this mounting beer price hike lies in the fact that the cost of beer production has grown significantly more expensive. Inputs ranging from hops and grains to labor, energy, packaging, and transportation have all experienced marked increases since the beginning of 2022. This economic conundrum is putting pressure on the wallets of beer aficionados and potentially impacting the overall public sentiment.
