Cost of groceries at ‘tipping point' as prices rise at double the rate of inflation
Grocery prices were up 4.96pc by May 18th, compared to the same 12-week period last year, according to Kantar's data. That's well over double the general rate of inflation – which the Central Statistics Office puts at 1.4pc in the year to the end of May. Grocery prices are also rising twice as fast as they were in the same period last year, Kantar said.
Rapidly rising food prices have caught many shoppers off guard this year, including dairy in particular. Earlier CSO data in May showed the price of a pound of butter had risen by close to €1 over the past year to an average of €4.69, a surge of more than 26pc.
The Kantar data confirms the high price of groceries is forcing shoppers to change their habits, including a more intensive hunt for bargains and discounts.
Shoppers spent an additional €124m on promotional lines over the last 12 weeks compared to the same period last year, according to Kantar, which recorded the highest share of packs on promotion since May 2021.
'Rising prices are influencing both sales performance and consumer behaviour,' according to Emer Healy, Business Development Director at Kantar. 'Although households have been adjusting their spending for some time now, what we're seeing is a clear 'tipping point' when inflation goes above 3pc to 4pc. This is when shoppers really start to feel it in their wallets, and they change their behaviour.
'As a result, supermarkets are having to be more creative in the way they attract shoppers in-store and online – offering quality products at the right price.'
Branded (47.4pc) and own label (47.1pc) products now make up almost identical market share. Premium own label continues to grow faster than the market as a whole.
The latest Kantar data shows Dunnes Stores held the top spot as Ireland's busiest grocery chain in May, with a 2.38pc market share. That put it ahead of Tesco (23.3pc) and Supervalu (20.3pc) and well ahead of Lidl (13.8pc) and Aldi (11.7pc).
Ireland, figures from the CSO last week showed prices, measured using the EU Harmonised Index of Consumer Prices (HICP) had risen 1.4pc in the 12 months to May 2025, although food prices are up 4.1pc in the last 12 months.
The Irish figures show energy prices are estimated to have fallen by 1.3pc in the month and decreased by 2.6pc over the 12 months to May 2025, with knock on effects across a range of sectors and as well as for households.
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