Beer & Inflation in the Flow of Time

It’s intriguing to me how beer prices have changed since 1999. Today, you can buy Braník on sale for 9.90 Kč, so for 100 Kč you get 10 beers. 25 years ago, you’d get 13.5 beers for the same amount. What does that tell us?

• The cost of labor and services has gone up a lot, but people are willing to pay and even expect a certain level of quality. There are way fewer run-down pubs than before.

• Production has become much more efficient, so considering inflation and purchasing power, bottled beer is actually cheaper now than it used to be.

In 1995, about 30 years ago, bottled and draft beer cost almost the same—around 7 Kč. (Source in Czech)

So what’s the takeaway?

1. A wealthy society can afford much pricier services.

2. Prices of basic groceries and fast-moving goods are squeezed to the bone. The best way to gauge real inflation is at the supermarket, where there’s no room for messing with margins, stock levels, seasonality, etc. Everything moves fast, competition is huge, and big retailers are relentless.

Real estate is pricey due to artificial (or bureaucracy-induced) shortages, but meat, milk, beer, bread, etc., are operating on razor-thin profits. That’s why they react so quickly—see point 2.