The Belgian brewing force, Interbrew, intends to raise the beer prices on its domestic market by 2.5%, as a result of malt prices surging during the third quarter of last year.

Guy Dewulf, a spokesman for Interbrew's Belgian division said: "Malt prices increased by more than 20% between July and October as droughts in the U.S. and Australia created a worldwide shortage.”

The price of malt may also affect the global price of beer but Dewulf said he could only comment on the impact for Interbrew's domestic operations.

The company did not rule out further increases in beer prices if malt costs continued to escalate.

09 January, 2003