Families feeling the pinch as cost of basic groceries still rising

Extra.ie​

07-05-2025

Grocery inflation has more than doubled over the past 12 months, new figures show.
The price of shopping basket staples, milk and meat, are up over 10%, putting a further squeeze on family budgets.
Price inflation in the supermarkets stands at almost 5% compared to a year ago, when inflation was at less than 2.4%, according to Kantar, which monitors thousands of prices every month. Grocery prices are on the rise. Pic: Shutterstock
Despite ECB efforts to bring inflation under control, families are 'really starting to feel the pinch' from the spiralling prices, said Michael Kilcoyne, chairman of the Consumers' Association of Ireland.
General inflation is at the ECB's target of 2%, but certain staple foods are going up faster than that. For example, weekly staples such as milk is up 12.5%, tea bags are up 4%, pork chops are up almost the same, while a small treat such as a litre of orange juice has shot up over 10%.
Mr Kilcoyne said: 'Inflation has more than doubled, that's disgraceful, and people are feeling it all over the place.
'It's tough, and that's without taking into account things like electricity.'
The grocery market is controlled by five different groups here, he said. 'The Government will have no choice but to give families a cost-of-living rise come the next Budget, even though the Taoiseach has ruled out that. Grocery prices are on the rise. Pic: Getty Images
'Clearly there's a big difference between somebody getting the Old Age Pension of less than €15,000… and his salary of almost €250,000, or the salary of the Minister for Finance as well. These are things you can't do without: bread, butter, milk, cereals…'
However, just weeks ago, Finance Minister Paschal Donohoe said energy credits cannot 'become the norm' despite advice from officials that they are still needed to address high fuel and electricity costs.
The Government has ruled out issuing more energy discounts in the next budget, despite them becoming a regular feature during the cost-of-living crisis. Domestic electricity customers got €250 in credits towards last year's bills.
The higher prices mean the cost of supermarket sales over the four weeks to April 20 were up by 8.4% compared to the same period last year.
Kantar director Emer Healy said: 'Despite average prices continuing to rise, it's clear Irish consumers are still treating themselves.
'With Easter falling late this year, it's been a real boost for retailers who have benefited from special occasions including St Patrick's Day, Pancake Day, Easter and the May Bank Holiday.'
Although prices influence decisions, it is clear Irish shoppers still cherish quality. Ms Healy added: 'This is evident with both branded and premium own-label products growing faster than the market as a whole.
'Our data shows shoppers spent an extra €102million on these two ranges compared to last year. Brands continue to hold a higher value share of the total market with 47.7% while own label holds 46.9%.'
Last month also saw a steep rise in drink sales, which were up 8.7% year-on-year. Shoppers spent an extra €8million on beer and cider, wine and non-alcoholic drinks compared to the same period in 2024.
The recent warm weather also boosted the performance of typical BBQ choices for the home griller. An extra € 1.1 million was spent on sausages, antipasti, coleslaw and potato salad in April.