Grocery inflation at 16.6pc after first drop in almost two years

Grocery prices are still rising but the pace of hikes eased in April for the first time in 2 years, Kantar said — © Getty Images

Sarah Collins

Grocery price inflation has slowed for the first time in two years, but prices are still rising in double digits.

Shoppers in Irish supermarkets paid 16.6pc more for goods in the 12 weeks to mid-April, compared to the same period last year, according to research group Kantar.

That was down slightly from the 16.8pc figure reported in March, based on a survey of more than 30,000 food, drink, cosmetics, cleaning and other products.

Easter celebrations, a bank holiday weekend and US President Joe Biden’s visit to Ireland in April buoyed grocery sales, which were up by 10.9pc between March and April

Sales of sales of wine, vegetables, lamb and chocolate all rose significantly in the month.

Sales of cleaning products were up by €5.3m, a rise of 10.4pc in the year.

Growth in supermarket own-label products (15.6pc) was running at almost twice the rate of brands (8pc), as shoppers looked to save money.

Value own-label products rose 33.4pc, with shoppers spending €18m more on these ranges.

Brands and own labels hold a similar market share.

“Although grocery price inflation remains high, it is now lower than the level seen last month,” said Emer Healy, a senior retail analyst at Kantar.

"This is the first dip seen in almost two years, which will be welcome news for Irish consumers.”

She said consumers are “shopping little and often” to help manage their budgets.

Visits to stores were up 10.2pc in the three months to April, with shoppers making an additional two trips compared to the same period last year.

The practice contributed an additional €278.4m to the overall market’s performance.

Online sales were up 4pc (by value) year on year, with shoppers spending an additional €6.5m online, although volumes were down 13.5pc.

Tesco, SuperValu, Lidl and Aldi all saw growth levels ahead of the total market in the three months to April.

Dunnes Stores retains the largest market share, at 23.2pc, with Tesco coming second at 22.4pc and SuperValu third at around 20.7pc. Lidl and Aldi hold shares of 12-13pc each.

Overall food and beverage inflation – not including alcohol – rose 13pc in the year to March, according to the Central Statistics Office.

Finance Minister Michael McGrath has urged corporations to pass on recent cost decreases to customers or risk further European Central Bank rate hikes.