Grocery inflation has surged to its highest level in nearly nine years and doubled since the start of the year, as consumers brace for continuing hikes in the price of living.
Nearly a quarter of consumers say they are now struggling to make ends meet when doing their weekly grocery shop.
Figures released this morning from research group Kantar show that grocery inflation rocketed to 4.7pc in the 12 weeks to April 17. That’s the highest level since September 2013.
Kantar senior retail analyst Emer Healy reckons the rising inflation will add about €330 a year onto the average household’s grocery bill. Kantar added that 23pc of the people it surveys are having difficulty meeting the cost of their weekly food shop.
That poses a grave danger for the country’s poorest households, who face the prospect of food poverty and having to ditch some grocery purchases in order to pay other bills.
The projected €330 increase in annual grocery bills looks like it could be conservative if inflation continues its rapid rise.
The rate of grocery inflation reported today by Kantar compares to a 3.7pc increase seen in the 12 weeks to March 20 and is almost double the 2.4pc rate it was in the 12 weeks before that.
Supply chain issues and the war in Ukraine are pushing up the price of commodities from oil to food, with the cost of everything from logistics to staff rising and having a knock-on effect at the tills.
“The impact of grocery inflation is being felt widely across store shelves and consumers will be noticing the effects on their budgets,” said Ms Healy.
“Foods like cooked poultry, bread, pasta, and butter have seen some of the biggest jumps,” she added. “Retailers are responding to the rising price of goods, focusing their efforts on offering everyday low prices for shoppers.”
She said the pandemic is probably no longer at the forefront of shoppers’ minds.
“The number of supermarket trips made each month has continued to fall, with shoppers making 3.5 fewer visits on average than this time last year when Covid-19 restrictions were much tighter,” Ms Healy pointed out.
“The average spend per buyer has also fallen significantly by €144 as consumers eat more meals out of the home,” he added. “ On top of that, the types of items we’re buying have changed too. Sales of instant hot snacks and frozen pizzas are growing by 9pc and 4.3pc respectively over the last four weeks as shoppers turn to quick and easy meals now that many of us are back in the office and juggling school runs again.”
Sales in the Irish grocery market grew by just under €2bn during the pandemic.
Total sales in the Irish grocery market were just over €12.7bn at the end of 2019, based on data from analytics firm Kantar and figures made public by Irish retailers.
By the end of 2021, sales had soared to just over €14.6bn.
The latest Kantar data shows that Dunnes Stores had a 22.4pc share of the market by the value of sales. SuperValu had 21.8pc and Tesco had 21.7pc. Lidl had 13pc and Aldi had 12.1pc.
The latest Kantar data shows the amount of take-home grocery sales in Ireland plummeted 7.2pc in the 12 weeks to April 17.
That decline comes as life returns to normal following the pandemic.