There are several major problems contributing to the rising prices. The first and foremost is the obvious problems with the hop shortage. This was caused by a number of bad things happening to the hop plants both here and in Europe (blights, fires ect...). It may take up to 2 more years to get it straightend out.
The second problem is grain. Many farmers are starting to grow more corn for the production of ethanol as a fuel source. Some fields that were once used for growing barley are now producing corn which is keeping the demand high. Couple that with the severe increase in fuel which is devastating profits in the freight industry, and we have significant price increase across the board.
Many of the home brewing stores have been doing there best to try to keep prices at bay (hats of to AHS! Great job guys) but the piling costs of raw material and freight is affecting everybody in a sudden pinch that came to a head the start of this year.
You will see the prices of commercial brewed beer starting to take off relatively soon. They have all been purchasing needed grains and hops to make it through the year in larger than normal quantities, but eventually will have to fold to thier increased overhead. The worst hit will be the micro-breweries who can't compete with the contracting power of the big boys on hops and grain purchase. It is not entirely easy for a brewery to alter a recipe either. Brewers Best and many of the other "kit" producers have had to make alterations and substitutions in thier recipes.
One good option would be to start buying your grain, extract, hops etc... in bulk since most of the above can be kept (if stored properly) for several months.
