Grocery price inflation has jumped to 6.3% over the past three months, up from 5.4% just 12 weeks ago, as families face increased pressure from back-to-school spending and rising energy costs.
New figures from consumer insights group Worldpanel by Numerator show that the weekly food shop has become significantly more expensive, with the increase coinciding with electricity price hikes announced by major suppliers including SSE Airtricity, Bord Gáis Energy and Pinergy heading into winter.
The return to school has particularly impacted grocery spending, with back-to-school shopping boosting sales by over 6% in the four weeks leading to September 7. Emer Healy, business development director at Worldpanel by Numerator, noted that families with children increased spending on typical lunchbox essentials.
“As the new school term began in early September, we saw spending on typical lunchbox staples increase across many households with children,” Healy said. Spending on sweet bakery items, fresh fruit, breakfast cereals, savoury snacks and yoghurt rose by €5.3 million during this period.
Overall, shoppers spent an additional €68.8 million on groceries compared with the same period last year, when grocery price inflation stood at just 2.8%. The sharp contrast highlights the significant deterioration in affordability over the past 12 months.
Consumers are increasingly seeking value through promotional offers, spending €758 million on promotional lines during the last three months, an 8.2% increase on the previous year. Key categories driving promotional growth included laundry products, water, squash and smoothies.
The latest market share figures show Dunnes maintaining a slight edge with 23.9% of the food market, narrowly ahead of Tesco at 23.7%. SuperValu holds 19.5% of the market and attracts the most frequent shoppers, with consumers averaging nearly 25 trips over the latest 12-week period.
German discounters Lidl and Aldi hold 14.2% and 11.6% of the market respectively, as price-conscious consumers continue to seek more affordable shopping options amid the sustained period of food price inflation.