The price of groceries in Irish supermarkets is now climbing at its fastest level in almost two years with the rate of inflation put at 6.5 per cent in the 12 months to early October.
According to retail analysts Worldpanel by Numerator, the last time prices were recorded increasing at this rate was December 2023.
Worldpanel also noted that the absence of one-off relief measures for Irish consumers in the budget and said that was likely to have an impact in the run up to Christmas with “extra pressure” likely to be felt by families struggling to make ends meet.
While the 6.5 per cent rate of grocery inflation is considerably lower than rates of close to 17 per cent that were recorded at the height of the cost of living crisis in the summer of 2023, the latest increases are on top of the earlier hikes and the cumulative impact will see many households worse off by in excess of €3,000 over the course of a year.
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The Worldpanel figures suggest that the value of take-home grocery sales in Ireland rose by 6.1 per cent in the four weeks to October 5th suggesting that shoppers are back in the swing of work and school routines.
“The next few weeks is a busy time for shoppers,” said Worldpanel by Numerator’s spokeswoman Emer Healy. “But with the latest budget for 2026 being announced against a backdrop of economic uncertainty, there will be more pressure on shoppers and it may have an impact on their discretionary spending.”
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She said the end of one-off payments such as the energy credit and double child benefit, along with rising fuel and other household costs, “will put extra pressure on many families, especially as tax bands remain unchanged and some credits are no longer available”.
Ms Healy added that with Christmas fast approaching and many starting their shopping early to help spread the cost, “households will be looking to balance multiple considerations when deciding what groceries to buy and where. With prices still rising, cost is naturally a top priority and will continue to be as we step into 2026”.
Spending on promotional offers has climbed to 21.9 per cent value share in the market, the highest level seen since this June as shoppers look for ways to stretch their budgets.
Promotional activity typically intensifies in the lead-up to the festive season, so this trend is likely to persist into December.
“Shoppers are increasingly relying on promotions to offset rising costs, resulting in an additional €71.5 million spent compared to the same period last year,” Ms Healy said. “As budgets tighten, it will be interesting to see how this will affect shoppers’ spending habits and the contents of their shopping baskets.”
[ Irish inflation jumps to highest level in 18 months as food prices surgeOpens in new window ]
Over the past three years there has been a big jump in indulgent categories’ sales on promotions with chocolate, soft drinks and biscuits all growing on promotion, up 62 per cent, 60 per cent and 30 per cent respectively versus 2022.
Overall, Irish shoppers are spending €145 million more on promotions than they were two years ago.
Growth in branded products slowed to 4.9 per cent in the past 12-week period, Irish shoppers still spent an additional €79.3 million on branded products.
Own label saw stronger growth at 6.3 per cent, with premium own label continuing to be the standout performer, up 15.2 per cent. Shoppers spent nearly €18.2 million extra on these ranges.
Dunnes holds a 24.4 per cent market share, up on the last 12-week period, with sales growth of 6.2 per cent year-on-year.
Tesco holds 23.7 per cent of the market, with value growth of 7.1 per cent year-on-year while SuperValu holds 19.2% of the market with growth of 4.6 per cent.
Lidl holds 14.1 per cent of the market with growth of 9.2 per cent. Aldi has 11.4 per cent of the market up 4.1 per cent.
