According to data from Kantar, grocery inflation in Ireland hit a record high of 16.3% in January. This is the highest level since Kantar began its reports on Irish consumer spending 17 years ago. With take-home grocery sales increasing 5% and average price per pack up 14.6%, Irish consumers are tightening their belts and spending less overall.
The 12-week period to 23 January saw an increase of 6.8% or €211.8m in take-home grocery sales, which equates to an additional €90.50 per household year-on-year an extra €1,159 being added to households’ annual shopping bills according to Emer Healy, senior retail analyst with Kantar. In comparison, inflation in Britain hit 16.7%.
Though prices have risen significantly over the past year, supermarkets’ own-label products have seen an increase of 10.4%, compared to 4.7% for branded lines showing that customers are seeking out cheaper alternatives as they experience increased pressure on their budgets due to rising prices.
The impact of grocery inflation has been felt throughout Ireland and beyond; while some retailers have responded positively by adapting their business models or introducing new products, others have been forced to close down or cut back on staff and services due to decreased customer demand resulting from high pricing and reduced disposable income amongst shoppers nationwide.
The effects of grocery inflation are far reaching; not only does it affect individual households but also businesses across the country as people adjust their spending habits in response to increased prices for goods and services alike.
While the true impact may be hard to measure at this point, there is no doubt that the situation will continue to change over time and both businesses and consumers alike need to remain aware of how these changes could potentially affect them both today and into the future as we grapple with the ever-increasing cost of living here in Ireland today.