Shoppers feel the pinch as prices rise

ECONOMISTS and statisticians have been telling us food prices are rising and now a trolley of basic items from a standard shop reveals just how much.

A comparison of prices from last Thursday with an identical shopping list a year ago shows an overall increase of 9.5% at Dunnes Stores, while essentials like bread, milk, butter, cheese and tea have all increased by between 14% and 30%.

That’s far more than the 5% general inflation rate and much more than the average welfare recipient or PAYE worker can hope to see their income rise by this year.

The goods chosen represent a midweek top-up shop by an average family of parents and children or the weekly shop of a childless or older couple and it doesn’t take into account fruit, vegetables, meat or fish.

Yet it will cost an extra €407.68 to keep buying those goods over the next year than it did a year ago and that’s only if prices don’t rise further, which is considered unlikely.

With the most severe price rises affecting the staples, an average household with children using five sliced pans and ten litres of milk a week can expect to fork out €187.20 more on those items alone over the next year, barring further increases.

The overall increase is less at Tesco, up 7% in a year, but prices started off higher there last year, so there was only a 2c difference between the bills at the two stores last Thursday.

The basket chosen for comparison did not take into account several “two for one” and other bulk discount offers available in Tesco on the day because such offers are temporary and, say poverty campaigners, are often not much use to those who most need to make savings.

For example, Tesco had a two-for-one offer on chocolate digestives and mineral water but campaigners point out that households on budgets would benefit much more from getting a comparably priced loaf of bread free and that people without private transport would struggle to carry a second two-litre bottle of water home.

“People who shop around and benefit from offers tend to be people who already have options and the resources to pursue them,” said John Mark McCafferty, head of social justice and policy with the Society of St Vincent de Paul.

“A lot of people don’t have their own transport, can’t afford the outlay to buy in bulk or live in rural areas or peripheral estates where they don’t have a suite of different supermarkets to choose from.”

With unemployment rising, the number of families in hardship is also on the increase and despite the Government imposing spending cuts across all departments and signalling a tough budget ahead, the SVP is calling for greater supports for those on the lowest incomes.

“We really need a good increase in social welfare payments for adults this year but also greater supports for people who are working but on low wages.

“The income limit for the Family Income Supplement for small families is too restrictive and the Government should really consider the potential for refundable tax credits where the poorest workers who aren’t in a position to avail of all their tax credits would have them refunded in cash.”

The SVP and Age Action are also seeking an improvement in the €7.70 Living Alone Allowance, which has not increased since 1996.

“A single person living alone has 70% of the costs of a couple because they still have to heat and maintain the house whether there’s one or two of them but they usually only have 50% of the income,” said Eamon Timmins of Age Action.

Both organisations are also calling for an increase in the winter fuel allowance.

Mr Timmins said the timing of the payment should also be more flexible.

“Older people often live in the oldest, coldest houses and we know people have been lighting fires on the wet evenings recently. It is too late for them when the payment doesn’t come until November.”