Food price inflation in Ireland hit 6.5 percent, the highest since February 2013, according to the latest figures from research group Kantar.
The inflation rate of 6.5 percent was recorded in the 12 weeks ended June 12, marking a rise from the 5.5 percent Kantar had reported for the previous 12-week period.
As a result of rising inflation, Irish consumers could now spend €453 more per year on their annual grocery bill. This is more than €100 more than the increase Kantar forecast earlier last month as inflation soars.
Increased spending at the checkout can also prove difficult for many to avoid as shoppers find that the prices of everyday essentials are increasing.
“We’ve seen some of the sharpest increases in staples like butter, eggs, bread and flour, which are non-negotiable for many of us on the shopping list,” said Emer Healy, senior retail analyst at Kantar.
In response to the increased cost of living, many Irish consumers have changed their shopping habits. According to Healy, shoppers are going to the store three times less per month on average than this time last year. In store, more than half of shoppers are actively seeking offers and ongoing discounts to save money.
Demand for online groceries has also increased, particularly among families with younger children. According to Healy, that 9.3 percent increase in online spending could indicate a desire to travel less due to rising fuel costs.
“They spent an extra €2.3 million shopping for groceries online in June, perhaps hoping to save extra car trips and avoid the gas pumps,” she said.
Demand for grocers’ own-brand products is increasing, as these items tend to be cheaper than the branded ones.
Healy reports that two-thirds of Irish shoppers will now swap the branded product in their shopping cart for a cheaper private label product. In addition, consumers spent €8.2 million more on Dunnes and Tesco own-brand products in that 12-week period.
Both grocers now lead the Irish market with a market share of 22.1 per cent each.
SuperValu followed in third place with 21.7%. The discounters Lidl and Aldi followed with a market share of 13.2 and 12.3 percent respectively.
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While take-out food sales fell 4.9 percent over the 12-week period, the June bank holiday weekend and warmer weather fueled a rebound for supermarkets. Shoppers spent €575,000 more on burgers and crickets in groceries in June compared to May, while ice cream sales rose another €2.4m for the month. Sunscreen sales also rose 36 percent in June.
Savory snacks are also currently showing strong sales, with sales in June of this year being over one million euros higher than in the same month last year. Soft drinks sales increased by €930,000 compared to June 2021.
Speaking at the Consumer Goods Forum Global Summit in Dublin last week, Tesco Group Chief Executive Ken Murphy, who was born in Cork, said Tesco had “historical evidence” that the “comfortable eating” of unhealthy snacking increases when a country makes an economic recovery downturn experienced.
https://www.independent.ie/business/irish/shoppers-face-increase-of-453-to-annual-grocery-bill-41794670.html Shoppers can expect an annual grocery bill increase of €453