Food price increases more than double overall inflation rate as households face mounting pressure
Grocery inflation in Ireland has surged to its highest level in two years, reaching 6.5% and more than doubling the country’s overall inflation rate of 2.7%, according to new figures from Kantar Worldpanel.
The sharp rise in supermarket prices, with no significant relief measures included in the recent budget, is placing substantial pressure on household finances. Shoppers have spent approximately €18.2 million more on groceries as a result of the price increases, based on analysis of over 30,000 comparable products.
Premium own-brand products have seen particularly strong growth, with alcohol and frozen food categories both up 31%, while sweet spreads jumped 43% over the past 12 weeks. Standard own-label products also increased 5.6% compared to last year as consumers seek value alternatives to branded goods.
The December 2023 inflation peak has now been matched, raising concerns the rate could climb further as Christmas and New Year shopping intensifies seasonal demand. Some analysts suggest the cost-of-living pressures could influence voter sentiment in the ongoing presidential election.
In response to rising prices, consumer reliance on promotional offers has increased dramatically. Spending on promotions now accounts for 21.9% of grocery expenditure, up 10.2% over the past 12 weeks. Shoppers spent an estimated €71.5 million more on promotional items than last year, and €145 million more than two years ago, indicating households are actively seeking discounts to manage budgets.
The grocery inflation surge contrasts sharply with Ireland’s broader economic inflation rate, highlighting food and household essentials as particular pressure points for Irish families.