As Australia faces a boost of barley prices because of the drought in many part of the country, beer prices will increase at least 5% this year. Barley costs are expected to push up to 40% this year after a 30% in the crop in Queensland and Victoria. East Coast beer makers are now buying barley from West Australia, which is also pushing up transport costs.

Beer prices have kept stable in the last 12 months after huge increases following the introduction of a new sales tax two years ago.

29 January, 2003