Grocery inflation eases but prices continue to rise for shoppers

Grocery price inflation has fallen to its lowest level so far this year, raising a cautious hope that consumers may eventually see a drop in prices. 

While inflation may be easing, prices are continuing to increase however, according to the latest findings from research group Kantar.

A survey of over 30,000 products in Irish supermarkets found that shoppers paid 15.8pc more for these goods in the 12 weeks to June 11 when compared with the same period last year.

“This latest drop in grocery price inflation will be very welcome news for consumers, although it is too soon to say if this is the ceiling as inflation rates are still much higher than we have previously seen,” senior retail analyst Emer Healy said.

Take-home grocery sales rose by 10pc in the four weeks to June 11 as consumers enjoyed spells of good weather.

While value sales are up this month, grocery price inflation remains the reason behind this. Grocery inflation rose by 15.8% in the 12 weeks to 11 June 2023, which is down on last month’s level of 16.5% and is the lowest level of inflation seen so far this year. 

Over the 12 weeks to 11 June 2023, take-home grocery sales increased by 11%, with consumers turning to shopping little and often to help manage household budgets. The percentage of packs sold on promotion also increased to 25.8% compared to 24.7% last year, showing shoppers are carefully choosing promotional items to help them to make ends meet. 

Irish consumers enjoyed longer warmer days during the last four weeks and took the opportunity to crack out the barbecues. As a result, they spent an additional €2.9m on beer and lager, €1.9m on chilled burgers and grills, and €1.2m on fresh sausages.

With the cost-of-living crisis bringing change to traditional shopping and eating behaviours, people are also thinking more about what they eat and how they cook at home. As shoppers look for easier meals with less waste, sales of total chilled ready meals shot up by 20% with shoppers spending an additional €2.9m year-on-year, Kantar found.