Food prices continue to climb, according to inflation data

Food prices have increased by over 3 per cent over the last year, according to latest data from the Central Statistics Office (CSO).

Irish consumer prices overall are estimated to have increased by 2 per cent in the 12 months to April. That figure represents a slight – 0.2 per cent – increase in the rate of annual inflation recorded in March. It is up 0.4 per cent for the month.

The trends are contained in April’s EU Harmonised Index of Consumer Prices (HICP) for Ireland. There was an annual increase of 2.2 per cent in the HICP across the euro zone in the 12 months to March, a slight downward trajectory.

The latest data reflected positively on energy prices which are estimated to have fallen 0.3 per cent in the month and by 1.7 per cent over the 12 months. Energy costs fell for the year in March too, but by a comparatively weak 0.4 per cent.

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Food prices, however, have increased in April, by 0.6 per cent over the month and by 3.1 per cent for the year. Estimates in March had the annual food increase at 3.2 per cent which would suggest a slight softening in inflation during April, but only marginally.

March saw the sharpest annual rate of food inflation in 14 months since it reached it hit 3.8 per cent in January of last year. Back in March 2023, it hit 13.5 per cent for the year.

The last monthly decline in food prices, according to the HICP metric, was in January when the rate dropped 0.7 per cent after Christmas. The more recent annual rate had been falling since last summer when it held steady at about 2.3 per cent.

Excluding energy and unprocessed food costs, the latest HICP estimate has increased 2.5 per cent since April 2024.

CSO statistician on prices Anthony Dawson said while transport costs have fallen fractionally, by 0.1 per cent for the month, they were up 2.1 per cent over the 12 month period.

The corresponding rate for the euro zone will be published in early May 2025 with flash estimates subject to revision.

The HICP is an index of consumer prices that has been harmonised to allow comparisons across euro zone countries. In Ireland the monthly Consumer Price Index (CPI) is the official measure of inflation.

Earlier this month, retail analysts Kantar Worldpanel reported that grocery prices were climbing much faster than in the comparative period last year, putting inflation in Irish supermarkets at just over 4.5 per cent.

Kantar’s business development director Emer Healy said the combination of higher grocery prices and rising household costs were leading supermarkets to focus on promotions to attract shoppers.