The Irish Independent's View: Doubting consumers need reassuring on soaring cost of food
A report from the State's competition watchdog found big retailers in are not making any higher profits than those in other countries, yet those filling their trolleys believe they are paying more for less. They are further confused by the fact that Ireland is now the second-most expensive country in the eurozone when it comes to food prices.
Anyone who isn't puzzled clearly hasn't been paying attention.
University College Cork economist Oliver Browne has calculated that grocery prices are up more than a third in the last four years. The report found rising costs in agriculture have fuelled some of the increases. This may go some way towards accounting for how meat prices have soared by 22pc and butter by 30pc in a single year.
But searching questions remain. For example, why, according to the report, is there a '19pc increase in agricultural products' here compared with '2.6pc across Europe'?
The report recognises that 'significant price increases' since 2021 are having a real impact, but it still holds that there are no issues regarding competition among retailers.
Shoppers are being gouged by supermarket chains who use their operations as a cash cow
It further argues that figures from grocery retailers 'continue to be in line with the margin band estimated by the CCPC in 2023', which was between 1pc and 4pc.
But shoppers remain in the dark when it comes to how much supermarkets are clearing in profits.
Social Democrats TD Jennifer Whitmore spoke for many when she told RTÉ that people would be 'scratching their heads' on reading the findings.
'Everyone who is going to the supermarket shelves, paying prices at the tills, they know exactly how expensive everything is and how much pressure it is putting on their household budgets,' she said.
Recently, Enterprise Minister Niamh Smyth rejected a call for mandatory financial reporting for all major retailers. She was responding to Ms Whitmore, who had claimed Irish shoppers were 'being gouged by large supermarket chains who use their operations as a cash cow'.
Shoppers are already on edge, wondering how Donald Trump's tariffs will hit their pockets. They expect the Government to insist retailers give a lucid picture on how they garner profits from prices so they can assess value.
Right now there is no such clarity and, for food prices, it seems the only way is up.
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