06-05-2025
- Business
- Irish Independent
Grocery inflation on the rise, with higher prices influencing consumer decisions
Grocery inflation in the 12 weeks to April 20 was running at 4.91pc, according to a report by research group Kantar, which keeps a constant track of prices.
The pace of grocery inflation was around half that level in early 2024.
Kantar's inflation calculation is based on comparing the prices of 30,000 Irish grocery items 12 months apart. The new numbers suggest prices are rising faster than Central Statistics Office (CSO) data has captured.
The CSO's latest inflation data suggested food prices rose 3.1pc in the last 12 months.
Business development director at Kantar Emer Healy said Irish shoppers are seeking out value but continue to spend on special occasions despite the price rise.
'Price influences decisions, but it's clear that Irish shoppers still cherish quality, particularly when it comes to special occasions,' Ms Healy said.
'Despite average prices continuing to rise, it's clear that Irish consumers are still treating themselves. Retailers have benefitted from special occasions including St Patrick's Day, Pancake Tuesday, the May bank holiday and Easter falling late this year.'
The report noted that shoppers were in stores 23 times on average, contributing an additional €9.7m to the market's overall performance. Retailers saw sales in the four weeks increase by 8.4pc with a 15.4pc increase in promotional sales.
'This is evident with both branded and premium own-label products growing faster than the market as a whole,' Ms Healy said.
'Ultimately, retailers need to demonstrate clear value to customers, but it's a tricky balance especially as they are trying to manage their own rising business costs.'
April saw alcohol sales increase by 8.7pc year-on-year – shoppers spent €8m on beer and cider.
An additional €1.1m was spent on barbecue food items like sausages, antipasti, coleslaw and potato salad.
In this period, online grocery sales were up by 10pc, amounting to €22.8m to the overall market performance.
Dunnes held 24.1pc of the market share with its sales growing by 6.5pc year-on-year.
Tesco holds 23.4pc and SuperValu holds 20.3pc. Lidl holds 13.5pc of the market, while Aldi holds 11.5pc.
