Grocery price inflation increases to 4.5% in March

Rising prices contributing to a 'slowdown in sales, having a marked impact on consumer habits', new market research data shows

March saw the slowest market growth in the grocery sector since November 2022.

Irish grocery price inflation jumped to 4.5% in March, with rising prices contributing to a “slowdown in sales” which is having a “marked impact on consumer habits”, new data from market research firm Kantar shows.

In the 12 weeks up to March 23, grocery price inflation stood at 4.5% — a 1.16 percentage point increase compared to the same period last year. During February, grocery price inflation stood at 3.7%.

Headline inflation during February stood at 1.8%. The Central Statistics Office (CSO) will publish the latest Consumer Price Index on Thursday.

Kantar business development director Emer Healy said the continued rise in average prices “is contributing to a slowdown in sales, having a marked impact on consumer habits”.

“With a combination of higher grocery prices and rising household costs, supermarkets are focusing on promotions to attract shoppers both in-store and online,” she said.

Take-home value sales in Ireland increased by 3.4% over the four weeks to March 23 compared to the same period last year. This is the slowest market growth rate since November 2022.

The average volume per trip also continued to fall by 2.9% in March, as shoppers preferred to shop little and often.

According to Kantar, promotional sales increased during the 12 weeks to March 23, with shoppers spending an additional €99m on promotional lines compared to the same period last year. Promotional sales currently hold 23% of total grocery spending compared to just 19% during the same time last year.

Branded items also remain popular with Irish shoppers, growing 4.5% compared to the same period last year and representing 47% of the total value market share.

Supermarket own-label sales jumped by 4.5% during this period, accounting for 47.6% of all value sales.

St Patrick’s Day and Shrove Tuesday helped boost seasonal sales in Ireland. Shoppers spent an additional €6.8m on beer, spirits and wine combined, along with an extra €590,000 on hot cross buns, pancakes, sugar and sweet spreads, compared to last year.

Sales of fish were also up, as shoppers spent an additional €930,000 on fresh fish and ready meals combined.

Irish shoppers also spent €7.5m less on Easter eggs in March compared to last year.

“It seems that this year’s late Easter is prompting shoppers to delay the temptation to buy Easter eggs too early,” said Ms Healy.

Online sales rose 10.8% year-on-year, with shoppers spending an additional €20.8m through this channel.

Kantar data shows Dunnes Stores holds 24.4% share of the consumer market spend, while Tesco holds 23.2%, and SuperValu holds 20.2%.

Lidl holds 13.5% while Aldi holds 11.6%.