Labour TD calls for Government to follow UK example to tackle food inflation

Kantar checks the prices of some 30,000 items on supermarket shelves to measure inflation. Stock Image. 

The Labour party’s spokesperson on Finance, Public Expenditure and Reform, Enterprise and Trade Ged Nash has called on the Government to follow the example of the UK government to bring retailers together to request that they introduce voluntary price caps on some on brand staples.

There was mounting evidence across Europe that food inflation was “extremely sticky” he told RTÉ radio’s Morning Ireland.

Mr Nash acknowledged that supermarkets could be “playing catch up” in terms of lost profits in the aftermath of the illegal Russian invasion of Ukraine.

Grocery price inflation is still running in excess of 16%, despite a slight dip in May.

The figures were released on Monday by market consultants Kantar, which said inflation was the “real driving factor” behind increased spending in Irish supermarkets rather than increased purchasing.

For its research, Kantar tracks the prices of 30,000 identical products sold in Irish supermarkets.

Mr Nash said: “What we've been calling for since the outset of this problem is for the Competition Protection Commission to undertake a detailed market analysis to fill in some of those gaps.

"We know, for example, that labour costs are modest. We know that input costs generally are coming down, but food inflation is extremely sticky. 

So the reality is, compared to this time last year, Irish consumers are paying almost one fifth more in terms of weekly shopping than they were last May.

Mr Nash said that the Government could not “simply take the word” of Retail Ireland which said that consumers will benefit from falls in commodity prices, but there's a bit of a time lag because last year retailers held off on increasing prices for as long as possible.

“This is what they're saying, but we simply can't take their word for it. That's why we need more price transparency so we can draw the dots.

"Retailers who aren't involved in profit taking or price gouging will have nothing to fear from shining a light into those dark corners, because I think light in this regard is the very best disinfectant.” 

Mr Nash claimed that the Government could follow the example of the UK's Conservative Party, “the party of billionaires” which was “run by an extremely wealthy individual. 

"Rishi Sunak understands the severe impact of grocery inflation on the UK population and has decided to bring the retailers together to request that they introduce voluntary price caps on some brand staples, which will have an impact on the bottom line for shoppers in this country as well. 

"This is something that this government has failed to do.

“I would rarely advocate that anybody would follow the lead of the Tory party in the UK, but it just shows you the mess I think that this Government has made of the grocery inflation situation.” 

Mr Nash said that in the next three weeks there needed to be “a serious stab” at reducing prices.