Food prices rising at three times the rate of general inflation

Irish Independent

5 days ago

Higher grocery costs are forcing families to cut back and buy cheaper cuts of meat.
Provisional inflation figures for July from the Central Statistics Office (CSO) show that the cost of food is continuing to rise sharply.
Overall inflation was up by 1.6pc in the year to July, a rise of 0.2pc since June.
But food prices are estimated to have risen by 4.6 over the last year, with a rise of 0.2pc in the last month.
This is according to a measure called the EU Harmonised Index of Consumer Prices (HICP) for Ireland, the CSO said.
Energy prices are estimated to have grown by 1.5pc in the month.
But they have fallen by 0.3pc over the last year.
The harmonised index excluding energy and unprocessed food is estimated to have grown by 1.7pc since July 2024.
Transport costs have risen by 1.2pc in the month, but fell by 2.7pc in the 12 months to July this year.
Recent research has found that shoppers are buying less in a bid to save money.
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They have reached a 'tipping point' due to relentless price rises, pushing them to buy cheaper items and use other tactics to keep costs down, according to separate research from grocery data firm Kantar.
Emer Healy, business development director at Kantar, said recently: '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.'
Research from consultancy firm KPMG found the cost-of-living squeeze means that getting the best price is the main priority for shoppers.
People are making choices about where to shop best on the prices they can get, according to the recent KPMG Next Gen Retail Survey.
The survey found that close to six out of 10 shoppers say that getting the best price is the main priority when deciding where to shop.
Researchers found that Irish shoppers are actively modifying their shopping behaviours to manage household budgets.
KPMG found that almost a third of Irish shoppers feel less financially secure now compared to the start of the year.
The research highlights significant financial pressure that Irish consumers are under, and a risk of further consumer price pressure as the impact of tariffs take effect.
More than half of the respondents (54pc) said they are now buying less items to save money.
Last month, Agriculture Minister Martin Heydon warned that the recent surge in food prices is unlikely to be reversed. He said it reflects farmers' input costs.
UCC economist Oliver Browne has calculated that grocery prices have cumulatively increased by 36pc in the past four years.
A leading farming group has blamed politicians for the rising cost of produce, warning consumers that the days of 'cheap food' are over.
The Irish Creamery Milk Supp­liers Association (ICMSA) also accused politicians of 'profound ignorance' as it blamed them for adding cost to food production.
The ICSMA said rising food prices are here to stay.