Beerflation: Oktoberfest prices five times as high as in 1985

The price of beer at Munich's world-famous Oktoberfest has risen more sharply than national inflation over the past decades, with the cost of one drink now five times higher than it was in 1985, Andreas Rees, chief economist of the UniCredit bank in Germany, said on Wednesday.

Munich's Oktoberfest, considered the world's largest beer festival, is due to open on Saturday, when Mayor Dominik Krause taps the first barrel to officially mark the start of this year's festivities.

The festival, where visitors are served beer in massive 1-litre mugs - locally known as Mass - is expected to draw millions of visitors from across the world dressed up in traditional lederhosen and dirndl dresses.

The price of beer has always been a major talking point, having risen sharply in recent years. This year, revellers will have to pay €15.61 ($18) on average per Mass, up 2.4% on last year, according to official figures.

This means the price increase stayed below national inflation this year, with consumer prices in Germany expected to reach 3% in 2026.

However, back in 1985, party-goers were charged the equivalent of €3.20 per litre of beer on average, a fifth of this year's price.

This corresponds to an inflation rate of 400%, while overall consumer prices have risen by only 120% since 1985, according to Rees.

The economist speculated that Oktoberfest's beerflation might have reached its peak, noting that high prices are usually the sign of low demand, but added: "Would we bet our next Mass on it? Probably not."