Latest news with #groceryinflation
Irish Times
13-07-2025
- Business
- Irish Times
Retailers deny price gouging as farmers warn high prices are the new normal
The surge in food prices in recent years is the 'new normal' and a consequence of more sustainable farming practices and tighter regulation rather than a temporary aberration, a leading farming group has warned. And retailers have insisted they are not profiteering at the expense of Irish consumers, their margins modest and grocery inflation in the State low by European standards. Data published by the Central Statistics Office (CSO) on Thursday points to a year-on-year price increase across the food and non-alcoholic drink sector of 4.6 per cent. However, in some areas, including meat and dairy, the price hikes are in double digits. According to the CSO, butter, which sells for around €3.99 a pound for own store brands and €5.49 for Kerrygold, is €1.10 more expensive than this time last year. READ MORE Other dairy basics have also recorded substantial increases, with shoppers paying, on average, 95 cent a kilo more for cheddar cheese and 27 cent more for a litre of milk. [ Price of grocery staples running well ahead of general inflation Opens in new window ] The latest increasers come on top three years of food inflation that have added in excess of €3,000 on to many households' annual bills, with no prospect of relief on the horizon. Denis Drennan of the Irish Creamery Milk Suppliers Association (ICMSA) told The Irish Times that it was 'more than a little irritating to be listening to politicians expressing amazement and concern about the surge in food prices when those same politicians seemed to have no problem at all voting through measures often directly responsible for heaping up higher costs on the farmers and processors producing that food.' He said regulations that now 'completely set the context for farming cost money, and what's really irritating – certainly from ICMSA's view – is the implication that, somehow, the farmers should have absorbed the increased costs out of our income, out of our margin'. He warned that the increases consumers have faced in recent years are not 'any kind of 'price spike' or aberration' but were 'the new normal'. [ Irish people more concerned about cost of food than counterparts Opens in new window ] 'Getting the food of the mandated standard to the fridge of your local supermarket has a cost – economically and environmentally – and that cost has to be paid,' said Drennan. He pointed to what he described as 'a decade or more when consumers were allowed to believe in the fantasy that all the change and astronomical expense involved in transitioning to low-emissions farming and primary food production was going to happen from the supermarket fridge backwards to the farm without any change or cost to the consumer. That was just a fantasy, and we now see the consternation when consumers realise that, actually, everyone is going to have to pay more for the new system.' Drennan also pointed to data which suggests that previous generations 'spent more than twice what we are [spending] as a percentage of the average family's disposable income. Irish consumers are not overpaying now; the data suggests they've been underpaying for decades and are only now starting to get a glimpse of what their food really costs.' Arnold Dillion of Retail Ireland, the Ibec umbrella group that represents supermarkets, said margins in grocery retail were low, with recent price increases 'overwhelmingly due to cost increases further up the supply chain'. He said that despite an increase in inflationary pressures in some categories, 'Irish food inflation trends remains below the EU average', and he pointed to a 2023 report by the Competition and Consumer Protection Commission (CCPC) which stated that the Irish grocery market 'remains highly competitive'. He suggested that the Irish market was 'highly competitive, profit margins are tight, and pricing decisions are primarily shaped by external cost pressures. The financial information in the public domain confirms that Irish grocery retailers are not earning abnormal profits, and are operating in full compliance with legal and regulatory standards.'
Irish Times
30-06-2025
- Business
- Irish Times
Grocery prices now climbing by more than 5% new figures show
Groceries in Irish supermarkets are getting more expensive with the latest figures from retail analysts Kantar Worldpanel suggesting a rate of inflation of 5.3 per cent over the last 12 weeks. While the current rate is significantly lower than what was recorded at the height of the cost-of-living crisis in the summer of 2023, it is around twice the level recorded this time last year. Multiyear price hikes have cost many Irish households thousands of euro each year with little prospect of a reversal in the short or medium term. According to Kantar grocery inflation was 5.3 per cent in the 12 weeks up to the middle of June compared to the same 12-week period last year. READ MORE Kantar's business development director Emer Healy said higher prices were 'clearly affecting both sales performance and shopper behaviour'. She said that as 'grocery bills rise alongside other household expenses, Irish consumers are cautious with their spending and actively seek out promotions to secure the best value.' [ Ireland's grocery prices are still soaring. How can that be? Opens in new window ] Shoppers spent €802 million on promotional lines during the latest 12-week period, a 15.7 per cent increase compared to the previous year. As well as rising prices, the Kantar research also points to 'abnormally hot weather over the last two months' prompting shoppers to splash out on sun creams and picnic-friendly convenience foods while visiting shops more frequently. [ Rate of grocery price growth more than doubled in past year, Kantar says Opens in new window ] People went to supermarkets 22.7 more and spent an additional €28.8 million over the last month. This is the highest summer frequency recorded since June 2021 when frequency was an average of 21.4. Ms Healy said that due to the warmer than normal weather sales of sun cream jumped by 6. per cent while shoppers also spent significantly more on prepared fresh fruit, water and dilutes, smoothies and juices. Convenience proved to be a priority in the sunny weather with an additional €2.4 million spent on chilled ready meals. IATA Director General Willie Walsh on airline profits, air fares and why the Dublin Airport passenger cap makes Ireland a laughing stock Listen | 35:56 Brands and own label both performed strongly, growing at 6.2 per cent with the former overtaking the latter in value share of the total market at 47. per cent, compared to brands with a 47.1 per cent value share. Premium own label experienced growth of 15.3 per cent over the 12 weeks, outperforming the total market which increased by 6.9 per cent When it comes to the store wars, Dunnes retained its lead with s 23.6 per cent of the market and sales growth of 8 per cent year on year. Tesco commanded 23.3 per cent of the market, with value growth of 7.7 per cent year-on-year while SuperValu was on 20.2 per cent with growth of 5.6 per cent. Lidl had 14 per cent of the market share here, while Aldi was at 11.8 per cent.
Arab News
25-06-2025
- Business
- Arab News
Consumers ‘adjust' shopping habits amid rising inflation
A new survey has revealed global concern (85 percent of respondents) about inflation's impact on grocery prices, illustrating consumer unease and clear changes in purchasing decisions across the world. Blue Yonder, a world leader in end-to-end digital supply chain transformation, announced the results of its 2025 Global Consumer Sentiment on Grocery Inflation Survey, spotlighting how sustained inflation, supply chain challenges and global tariffs are influencing grocery spending and broader consumer behavior across generations and regions. The survey polled consumers across Australia and New Zealand, France, Germany, the Middle East, the UK, and the US. 'The findings of this survey underscore just how widespread and deeply felt the impact of inflation is on consumers' everyday lives,' said Ben Wynkoop, senior director, global industry strategist, grocery and convenience, Blue Yonder. 'From buying fewer grocery items and cutting back on certain purchases to shopping at discount retailers and reprioritizing spending across other categories, consumers are navigating prolonged uncertainty — and retailers must adapt accordingly.' Nearly half (49 percent) of all respondents believe newly introduced global tariffs are the leading factor behind inflated grocery prices, followed by increased costs for raw materials (42 percent), increased labor costs in manufacturing and food processing (39 percent), and increased profit margins for brands and manufacturers (33 percent). The perceived top factor driving inflated grocery prices differs across regions. Consumers in the US (65 percent), the UK (56 percent) and the Middle East (50 percent) feel global tariffs are the leading cause of rising prices. Consumers in ANZ (50 percent) feel that increased profit margins for brands and manufacturers is the top factor for inflated prices, while consumers in France (48 percent) and Germany (47 percent) believe the increased cost of raw materials is the leading cause of grocery inflation. There is a generational divide, too. Baby Boomers uniquely believe that increased labor costs in manufacturing and food processing are the leading cause for grocery inflation (52 percent), whereas all other generational groups believe global tariffs are the top cause of inflated prices. Inflation's grip on grocery bills is triggering global concern from consumers. Almost two-thirds of consumers (65 percent) report they would buy fewer grocery items across categories to cope with price increases, while 42 percent would shop at discount and wholesale stores. In addition, approximately one-third would prefer shopping based on promotions and discounts (36 percent) and switching to private label brands (34 percent). Globally, consumers in ANZ are the most likely to reduce spending on clothing and footwear (67 percent), followed closely by the US (62 percent), the UK (61 percent), France (49 percent), Germany (49 percent), and the Middle East (47 percent). 'With most consumers willing to adjust shopping habits in response to grocery inflation and mounting financial pressures, retailers — not just grocers — need to recognize the importance of building trust with shoppers through transparency, targeted promotions and affordability-first strategies,' Wynkoop added. 'Having the right supply chain solutions can help retailers win with consumers during times of both economic prosperity and difficulty.'
Bloomberg
24-06-2025
- Business
- Bloomberg
UK Food Prices Rise Further as Grocers Battle Cost Burden
Grocery price inflation has grown to the highest in 15 months across British supermarkets, with shoppers turning more to own-label ranges to save pennies. Annual price growth rose to 4.7% in the four weeks to mid-June, compared with 4.1% a month earlier, according to market research firm Kantar. It's the biggest increase since March 2024.
Yahoo
24-06-2025
- Business
- Yahoo
Grocery prices rise again to 4.7% more expensive than a year ago
Grocery prices are now 4.7% more expensive than a year ago as supermarket inflation hit its highest level since last March, figures show. The figure is up from 4.1% last month, which was a rise from 3.8% in April, according to data from analysts Kantar. Price rises did not stop British consumers from making 490 million trips to the supermarket over the last month, averaging almost 17 per household and the highest recorded by Kantar since March 2020. The increase in visits saw take-home grocery sales over the four weeks to June 15 grow by 4.1% compared with the same period last year. However, the rise in the frequency of visits was balanced out by a drop in average amount spent per trip, which fell by 3p to £23.89. As temperatures rose, consumers bought 2,400 packs of strawberries every minute in the last four weeks. Shoppers also traded up to more exotic fruits too, with sales of mangoes and blueberries climbing by 27% and 10% respectively. Overall grocery volumes fell slightly by 0.4% over the last four weeks, the first year-on-year decline this year, with Kantar suggesting that a small part of this could be due to changing health priorities such as the growing use of GLP-1 weight loss drugs. Fraser McKevitt, head of retail and consumer insight at Kantar, said: 'Supermarkets and grocery brands are entering new territory as weight loss drugs become more popular, with four in 100 households in Great Britain now including at least one GLP-1 user. 'That's almost twice as many as last year, so while it's still pretty low, it's definitely a trend that the industry should keep an eye on as these drugs have the potential to steer choices at the till. 'Four in five of the users we surveyed say they plan to eat fewer chocolates and crisps, and nearly three quarters intend to cut back on biscuits.' Meanwhile, consumer concerns over price are continuing, with sales of own label ranges growing 4.2% this month ahead of branded lines as shoppers looked to balance their budgets. Ocado was the fastest growing grocer with sales up 12.2% in the 12 weeks to June 15 to take a 1.9% share of the market. Lidl was the fastest grower among bricks and mortar grocers at 11.2% – its third consecutive month of double-digit growth to reach 8.1% of the market. Fellow discounter Aldi increased its share to 10.9% as sales rose by 6.5%. Tesco saw the highest share gain over the period, at 0.5 percentage points, taking it to 28.1% of the market. Asda's sales fell by 1.7% on a year ago, leaving it with a market share of 11.9%. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
