Inflation figures show food prices increased by just over 2 per cent in the year to April 2000.
The Minister for Finance, Mr McCreevy, said the Food Sub-index of the Consumer Price Index rose by 2.3 per cent.
This was substantially lower than both the headline rate of inflation and the increases in Social Welfare payments announced in the recent Budget, he said.
Mr McCreevy told the Labour TD Mr Jack Wall in a written reply to a Dail question that the figures were published after the introduction of the national minimum wage, and the rate of increase in food prices had slowed substantially since the beginning of 1999.
The rate of increase fell from a peak of 4.8 per cent in February 1999 to 2.9 per cent by the end of the year and reflected falls in the prices of potatoes, fresh fruit and vegetables as supply conditions improved in 1999 after poor harvests in 1998.
"Food inflation has continued to moderate this year, from 2.9 per cent in January to 2.3 per cent in April, reflecting falls in the prices of fruit and vegetables and more modest price increases for bread and bakery products and other processed food.
Increases in meat and dairy product prices continue to be substantially lower than headline inflation," the Minister said.