Food prices in Ireland have reached their highest level in two years, with inflation currently at 6.5%, according to the latest figures from Worldpanel by Numerator. This marks the first time food inflation has increased this significantly since December 2023.
The price surge is attributed to several factors including the start of the new academic year, the approaching Halloween season and the upcoming festive period, which traditionally drive increased consumer demand and higher prices.
The company says the recently announced Budget 2026 will also influence consumer spending patterns. However, economists warn that the elimination of one-off assistance schemes such as energy credits and the double child benefit payment will negatively affect household spending power. Rising fuel costs are adding further pressure on family budgets.
The combination of higher food prices and reduced government supports comes as households already grapple with Ireland’s position as the second most expensive country in the Eurozone and third in the European Union for food costs.
Supermarket Market Share
According to the report, Dunnes Stores leads the Irish supermarket sector with a 24.4% market share. Other major retailers hold the following shares: Tesco 23.7%, SuperValu 19.2%, Lidl 14.1% and Aldi 11.4%.
The rising food inflation poses challenges for consumers during the festive season, traditionally a period of higher household spending. With energy credits eliminated and fuel costs rising, many families may face difficult choices about spending priorities in coming months.