Beer and liquor prices rise due to inflation and supply chain issues

But the 4% increase is specifically due to a notable increase in beer prices in stores as well as an overall increase in the price of drinks in bars and restaurants.

Sales of beer, ale and other malt beverages for home consumption increased by 4.5%. This compares to a 2.7% increase in prices for home distilled spirits and a 1.8% increase for home wine.

The cost of drinks in bars saw an even bigger increase at 5.9%. Beer, beer and other malt liquors in bars accounted for a 5.8% increase, while wine rose 6.4% and distilled spirits 5.5%.

Beer prices are peaking just as Americans prepare to celebrate one of the biggest holidays of the year. Americans are expected to spend more than $1 billion on beer this July 4 weekend.

Rising beer prices for consumers are largely the result of tangled supply chains that lead to higher production and distribution costs for breweries.

The price of aluminum, for example, has risen to a 13-year high, meaning breweries are paying more and sometimes struggling to find packaging cans. The cost of glass bottles has also increased by 20% for some distributors. On top of that, record high gasoline prices that continue to rise are driving up shipping costs across the economy.

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