The price of a pint of Guinness looks set to rise by around 10 cent from next month as Diageo announced yesterday that it would be upping its price to publicans by 4 cent.
Traditionally, when the breweries put up their prices, the retailers follow. With VAT, the rise is likely to be 10 cent.
A Diageo spokeswoman said last night the increase is being put on to recover costs that have increased in the last 12 months.
"We will continue to invest in our products," she said.
The increase will come into effect on June 1st and will cover all Diageo's beer products, including Guinness, Smithwick's, Carlsberg, Harp and Budweiser.
Last night, a consumer group condemned the proposed increase and called on publicans not to make their own addition to the rise.
"This is very short-sighted of Diageo and it would be a disastrous step for publicans to take the usual step to add to that increase," said Dermott Jewell of the Consumers' Association of Ireland. "It will not benefit them. The only thing it will do is drive more people away from pubs," he added.
News of Diageo's latest price increase comes just a day after the announcement of the establishment of the National Consumer Agency, which has enhanced powers to fight against unjustified price rises.
"It just proves how ridiculous the situation we have at the moment is and it illustrates how badly we need a strong consumer agency," said Mr Jewell.
"Diageo have shown how poorly they value the consumer and I think that the consumer will just not take this any longer. The market is far too expensive already and everyone can see that," he said.