Economics: Why Did The Price Of Canned Beer Drop Suddenly?

 

(Drivebycuriosity) - There is a lot talk about rising inflation. Indeed, the prices of many goods & services are going up, driven by the economic recovery. But one price dropped suddenly this year - the price of canned beer.

 

 

 ( source)

 

I found the graph above in the blog "Economist-writing-every-day ( economist). The author does not give an explanation. But I have (an educated) guess. 

During the pandemic many beer pubs were closed. People drank more beer at home and they bought more cans. In the recent months many pubs reopened, thanks to the ongoing vaccination. People went back to the pubs and they drank more draft beer. 

Therefore the price of beer kegs went up - as for almost everything else. But the pub visitors drank fewer canned beer - and the price responded to the falling demand.