Food sector accused of 'price-gouging' as survey shows consumers have less money this Christmas

According to the Credit Union survey, 52% of Irish consumers said they have less money to spend on Christmas in 2025 than they had a year ago.

More than half of Irish consumers have less money to spend this Christmas, with many planning to cut back on entertainment and gifts, as worries over household finances increase further.

The latest Credit Union Consumer Sentiment Index reveals major money worries in households, as food costs continue to rise and energy providers increase their prices.

The Government has been told "price gouging is taking place" in the food sector, with the cost of groceries soaring over the last three years. 

According to the Credit Union survey, household finances remain a "pressure point”.

Responding to the survey, economist Austin Hughes said: “The main factor weighing on the mood of Irish consumers of late is a strong sense of continuing pressure on household spending power."

So-called “Christmas inflation” — the cost of typical festive items — will be higher this year than last, largely due to the acceleration of food prices.

According to the Credit Union survey, 52% of Irish consumers said they have less money to spend on Christmas in 2025 than they had a year ago.

“This is up, albeit modestly, on the 47% of consumers who said their Christmas spending power had fallen in 2024,” Mr Hughes said.

“A clear sense that cost-of-living pressures remain broadly based is suggested by the fact that the number of consumers who say they have less money to spend on Christmas 2025 is nearly six times as many as the number with more money to spend,” he added.

The survey also found that 53% of Irish consumers will cut back on entertainment spending this Christmas, with 50% saying they will reduce spending on Christmas presents.

In terms of how consumers are going to pay for their Christmas spending, 42% of households said they would fund it through their own income, 37% said it would be through their savings, and 9% said they would be seeking to borrow money.

In the Dáil yesterday, the Opposition told Tánaiste Simon Harris that "price gouging is taking place" in the food sector.

Social Democrats TD Cian O'Callaghan said [Irish Times] Pricewatch had compared 25 supermarket staples over three years and that in 2022, a basket of everyday items cost €87 but the same basket now costs €135.

"That is a 55% jump in just three years. The price of bread is up, the price of eggs has increased by 50% and chicken has more than doubled in price. These are not luxuries, they are basics. 

Ireland now has the second highest prices in the eurozone, 12% above the EU average. Families are being fleeced.

"The Competition and Consumer Protection Commission and the Central Bank have found that food prices are increasing way beyond the costs of producing food," Mr O'Callaghan said.

"In other words, price gouging is taking place. Somewhere along the supply chain, someone is pocketing the difference and people are left to carry the burden. We have a food regulator whose job it is to shine a light on this, but the Tánaiste's Government has tied its hands. Right now, it can only ask for information. 

"It cannot compel supermarkets or processors to hand over data. Dunnes Stores has already refused to co-operate with the regulator's investigation of the price of eggs, fruit and vegetables. The regulator's chair, Joe Healy, has pleaded with the Government for stronger powers since last year. He is still waiting. Families are still waiting."

In response, Mr Harris said the regulator has already secured a prosecution and had "extensive powers to compel information when pursuing complaints under unfair trade and practices legislation".

He said agriculture minister Martin Heydon "has engaged with key stakeholders in the supply chain" and there has been legal scrutiny of a draft statutory instrument which would expand the powers of the regulator and Mr Heydon "expects to be in a position to sign that draft statutory instrument in the coming weeks".