Beer Prices Come To A Head; Ethanol Blamed

Sure, switching barley production to corn to feed the ethanol plants might be a cause of rising beer prices. But with gasoline and diesel at record high prices (in the U.S. anyway), the shipping of raw materials and finished goods is also more expensive than it's ever been.

It's the latest example of the trickle-down economics of ethanol -- beer is getting more expensive.



Compared to this time last year, beer prices are up about 3 percent across the nation, according to the Labor Department. The increase marks the largest jump in more than two years.



One big reason, according to some brewers, is the rising cost of barley. A high demand for corn-based ethanol has many farmers devoting more fields to their corn crop and less to barley.

Read the entire article at WGAL.