Agricultural prices, often seen as a proxy for food prices, jumped by almost 19 per cent in the 12 months to June, according to the Central Statistics Office (CSO). However, the figures marked a second modest monthly retreat.
The agency’s agricultural output price index, which monitors trends in prices paid to farmers for their produce, increased by 18.9 per cent on an annual basis in June.
The surge in output prices was driven mainly by a dramatic increase in the price of cattle, which was 43.6 per cent ahead of the same time last year, even though prices dipped almost 2 per cent on May.
Other meats saw much more modest increases with poultry prices 2.8 per cent up on June 2024, and the price of sheep and pigs effectively the same as a year ago.
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Notable increases in output prices outside meat included milk – up 11.9 per cent over the past 12 months – and wool, which was almost a third higher. Eggs prices were 4.2 per cent up on June last year.
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However, arable and crop farmers fared less well. The farm gate price paid for potatoes fell by 15.7 per cent compared to a year ago and there was also a marginal fall in cereal prices.
On the input side, the costs of producing agricultural produce have risen by a more modest 0.6 per cent over the past year.
Most costs are actually down on the same time in 2024, including energy, feed and seeds. However, there have been some notable increases. The cost of fertilisers was up 10.5 per cent year on year while veterinary expenses were up 4.7 per cent.
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The CSO’s figures come in the wake of an acceleration in food price inflation for consumers.
Grocery price inflation increased to almost 5 per cent in July, nearly three times the rate of overall inflation, according to the CSO’s latest consumer price index (CPI).
The CPI showed headline inflation in the Irish economy dropped to 1.7 per cent in July, edging down from 1.8 per cent the previous month, as consumers benefited from cheaper clothes, air fares and transport fuels.
However, the figures show that food prices rose at a significantly faster pace, up 4.7 per cent year-on-year, as consumers paid more for a range of basic food items.
