TIPPING POINT |
Price of a pint to hit €10 in ‘certain locations’ as inflation soars, economist warns
‘Basically people can get away with it, so it’s the market situation’
4th September 2022
The price of a pint in Irish pubs could increase to €10 in “certain locations” as inflation continues to soar, a top economist has warned.
DCU Business School professor Tony Foley explained that places such as Dublin city centre could see the milestone being passed within months.
However, he added that that this would not be across the board and won’t be the case in all parts of the country.
“In certain locations yes, as a general rule of thumb no, we’re well away from that,” he told Newstalk. “The CSO estimates an average price for a pint of stout across the country, the latest figures were for June of this year, and the price is €5.13. So it’s a long way to go to €10.
“Basically people can get away with it, so it’s the market situation,” he added.
“You’re able to charge €6, €7 in some places and in other places it’s €4/€4.50. The other argument, of course, is the cost involved: that the cost of running a pub is different in different locations.
“If suppliers have increased their prices by, say 5c a pint, what you will find is the publican won’t increase it by 6 or 7c.”
“They’ll increase by some sort of multiple of that, 10 or 15c. And what they want to do is maintain their margins, but also keep the arithmetic sensible. You don’t want to be charging €4.67 for a pint, it’ll be €4.60 or €4.70.”
The latest price increase affecting the price of pint comes as it has been revealed that Ireland is more expensive than many typically high-cost European countries such as Luxembourg and Sweden. It was revealed that Irish consumers pay 40 per cent more for energy than the EU average.
According to a Bonkers.ie survey, we pay more for hotels and restaurants, food and drink, healthcare, mortgages and communication.
And when it comes to both alcohol and tobacco, Ireland is the most expensive, with prices reaching double the EU average.
In January 2022, the average price of alcohol in Ireland had increased by 17.4 per cent throughout the previous 12 months.