Kantar: Irish grocery price inflation is just under 6%

The market researcher's data suggests that grocery price inflation is still running ahead of the general inflation rate

Market researcher Kantar says its grocery inflation monitor is based on 30,000 identical products and 'represents the most authoritative figure currently available'. Picture: iStock 

Grocery prices in Irish supermarkets is running at just under 6%, well ahead of the general inflation rate, but has slowed further in recent weeks, according to figures from market researcher Kantar.

Kantar said that its annual measure of grocery price inflation was running at 5.9% in the 12 weeks to late January, which compares with the 7.1% rate it recorded in the previous period.

The market researcher said its price monitor is solidly based on 30,000 identical products which it compares “year-on-year in the proportions purchased by Irish shoppers and therefore represents the most authoritative figure currently available”.

The Kantar measure takes account of any so-called product shrinkage, but it says shoppers do trade down to supermarket own-label groceries.

“Many Irish consumers are keeping a very close eye on their purse strings after indulging over the festive period and to help manage household budgets, many are trading down to supermarket’s own label products and looking for deals,” said Kantar business development director Emer Healy.

Kantar’s latest figures suggest that sales of own-label products are outperforming the overall growth in sales across all supermarkets, but that premium label products were also growing strongly, despite the cost-of-living crisis bearing down on many households.

Kantar’s grocery price inflation measure of 5.9% compares with the 4.6% annual inflation rate as measured in the consumer price index for December by the Central Statistics Office.

Last week, Eurostat’s so-called flash estimate had Irish inflation pegged back to an estimated 2.7% in January, down from 3.2% in the previous month. Eurostat figures are calculated to make it easier to compare consumer price inflation across European states, which in Ireland’s case means it excludes changes in Irish mortgage interest costs.

Kantar business development director Emer Healy: 'Many Irish consumers are keeping a very close eye on their purse strings after indulging over the festive period...'

Eurostat figures showed that eurozone inflation was running at an average rate of 2.8% in January, down slightly from 2.9% in December.

Total sales at Irish supermarkets rose 6% in the latest surveyed period from the same period a year earlier, according to the Kantar figures. The five large supermarket chains dominate Irish grocery shopping and their combined market share  has increased to over 92% from a year ago.

According to Kantar, Dunnes with a market share of 24.6% was the top supermarket in terms of overall sales over the latest 12 weeks. Tesco at 23.8% and Musgrave-owned SuperValu with a share of 20.6% were the next largest in terms of sales, while Lidl and Aldi secured shares of 12.5% and 10.8%, respectively, in the period.

Figures provided by Kantar to the Irish Examiner last month showed that shoppers spent almost €14bn at Irish supermarkets last year, up by more than €1.1bn from the previous year, although rapidly rising prices accounted for a significant chunk of the increase.

The market researcher had also found the five largest supermarkets in the Republic — Dunnes, Tesco, SuperValu, Lidl, and Aldi — increased their grip on the key Christmas trading period and accounted for well over 92% of all grocery sales in the run-up to December 25.