Grocery price inflation ticks up to 2.8% 

Good weather and major sporting events saw increased spending on alcohol, confectionary and savoury products, market research finds

Grocery price inflation is running ahead of the overall rate of inflation which stands at 2.2%. 

Grocery price inflation ticked up slightly this month, with Irish consumers spending more on alcohol, crisps and sweets while enjoying numerous major sporting events, new figures from market research firm Kantar show.

In the 12 weeks to August 4, grocery prices increased by 2.8% compared to last year, which is a slight increase from the 2.6% recorded in July. It is also ahead of the overall annual rate of inflation currently running at 2.2%.

Business development director at Kantar Emer Healy said customer spending on promotions rose by 10.8% compared to the same period last year, with 24.5% of all value sales going through on promotion.

“Shoppers will always look for the best value and make the most of the wide range of promotions offered by retailers to help manage household costs,” she said.

An additional €59.2m was spent on own-label products compared to last year, while an extra €13.5m was spent on premium own-label products. Brands grew ahead of the total market, up 7.7%, with shoppers spending an additional €111m on branded products versus last year.

Online sales were up 11.5% year-on-year, with shoppers spending an additional €18.9m on online purchases.

Olympics and All-Ireland finals

The period surveyed includes a number of major sporting events including the Olympics as well as the All-Ireland finals.

Ms Healy suggested the good weather as well as the various sporting occasions led to an additional €8m being spent on alcohol and an extra €5m being spent on take-home confectionery and savouries combined.

In addition, an extra €367,000 was spent by Irish shoppers on sausages, €254,000 extra was spent on ice cream and €416,000 extra on mineral water compared to July.

Tesco saw significant growth over the last year and now holds the highest market share of consumer spending at 23.3%, overtaking Dunnes Stores at 23.2%. 

Tesco’s growth stems mainly from more frequent trips contributing an additional €36.3m to overall performance year-on-year.

SuperValu holds 20.2% of the market while Lidl holds 13.8% and Aldi holds 12%.