The press seems to be full of doom and gloom stories about the rocketing price of barley and hops, which in turn will lead to a price rise at the pub of up to 60%. eg:
No I'm no mathematician, but I do know that the main constituent of beer (well over 90%) is water which is pretty damn cheap. I also know that the retail mark up on a barrel of beer is well over 100% (I've just bought a barrel for Christmas which cost me £60 including VAT, equating to 83p per pint which I've seen on sale in a pub for well over £2 a pint). And that 83p contains a not insignificant amount of tax.
So how on earth can even the most astronomical rise in price of barley and hops - such small constituents in beer - lead to a 60% rise in the finished product?