Irish grocery prices climbed by more than 6 per cent over the summer, with the rate of increase now more than three times higher than the general rate of consumer price inflation within the economy.
New figures from consumer data company Worldpanel by Numerator also reveal a sharp uptick in supermarket spending in the four weeks to September 7th, driven largely by back-to-school shopping.
Grocery sales climbed by 6.1 per cent compared with the same period last year, while store visits jumped by 0.7 per cent.
It meant that shoppers spent an additional €69 million on groceries over the period compared with the same four weeks in 2024.
RM Block
Meanwhile, in the 12 weeks to September 7th, grocery prices were 6.3 per cent higher than last year, Worldpanel’s analysts said, up from an annualised rate of 5.4 per cent in the preceding 12-week period.
According to the Central Statistics Office, the general rate of consumer price inflation in the Irish economy in August was 2 per cent, so grocery prices are increasing by more than triple the average.
The latest price increases come on the heels of three years of steep food price inflation, triggered partially by Russia’s invasion of Ukraine, which caused a spike in grain and other commodity prices.
Emer Healy, business development director at Worldpanel by Numerator, said the spending on “typical lunch box staples” was up over the period in advance of the new school year.
“Over the latest four-week period, shoppers spent an additional €5.3 million on sweet bakery items, fresh fruit, breakfast cereals and porridge, savoury snacks and yoghurt,” she said.
Why has the DAA board fallen out with chief executive Kenny Jacobs?
“Convenience is also a priority, with an extra €1.6 million spent on fresh and frozen ready meals and cooking sauces compared with last year.”
Against a backdrop of rising prices, shoppers are keen to find value, taking advantage of promotions to a greater extent than they did last year, the analysts said.
Some €758 million was spent on promotional items over the 12 weeks, an increase of 8.2 per cent on the same period last year, accounting for 21.5 per cent of all grocery sales.
[ Agricultural prices jumped by more than 17% in the past year, July data showsOpens in new window ]
Meanwhile, Worldpanel by Numerator’s latest data show that Dunnes Stores held on to its leading position in the market with a 23.9 per cent share, despite slowing sales growth.
Tesco was second with 23.7 per cent of the market, followed by SuperValu at 19.5 per cent.
Lidl, with a 14.2 per cent market share, was the fastest growing retailer over the period. Sales volumes at the German-owned supermarket chain increased by 2.5 per cent over the period, contributing an additional €11.5 million.
Aldi held 11.6 per cent of the market over the period, up 4.7 per cent.
