Grocery inflation rose by 12.8% in the 12 weeks to August 6, the lowest level since November 2022, according to Kantar.
Data published today (Monday, August 21) shows that grocery sales in Ireland increased by 6.8% in the four weeks to August 6, 2023 as the average price per pack soared 8.8%.
Shoppers visited stores more often during August, up by 2.7% on the same month in 2022.
However, there was a slight drop in frequency of trips month-on-month, down by 0.5%, from 20.1 shopping trips in July to 19.6 in August.
Grocery inflation
Kantar said that grocery price inflation is the driving factor behind the upswing in sales rather than increased purchasing.
“This is the third month in a row where there has been a drop in grocery inflation, which is welcome news for Irish consumers, although the rate is still incredibly high,” Emer Healy, business development director at Kantar, said.
“Compared to last month’s grocery inflation rate of 14.7% there has been a significant drop of 1.9 percentage points.
“This is the lowest level we have seen over the past 10 months, and we expect to see a continued gradual decline in inflation rates over the coming months,” she added.
Healy said that the fall in grocery inflation is beginning to be reflected in the prices on supermarket shelves.
“Compared to May 2023, when grocery inflation hit its highest peak of 16.5%, we are starting to see a slight decline in average prices on essential lines. As a result, we are spending €0.36 less on butter, milk and cheese combined,” she said.
Kantar
Sales of own-label products were up 13% in the last 12 weeks, compared to brands at 5.7%.
For the third consecutive month, own label retained a higher share of the market than brands, hitting a value share of 48.1% compared to branded share at 46.3%.
“The average increase in the household weekly grocery shop is €9.10 compared to last year, well below the extra €17.80 shoppers would have paid if they bought the same items 12 months ago based on the current rate of inflation,” Healy said.
The widespread downpours in July meant that barbeques were kept under wraps resulting in shoppers spending almost €500,000 less on chilled burgers and grills and €1.3 million less on chilled prepared salads year-on-year.
Consumers also spent €2.5 million less on ice cream and a combined €2.3 million less on fruit squash and mineral water.
Online sales remained strong over the 12-week period, up 11.2% year-on-year, with shoppers spending an additional €16.6 million online.
According to Kantar, Dunnes and Tesco have the combined highest share of the retail market with 22.6% each.
SuperValu holds 20.9% of the market, followed by Lidl with 13.8% and Aldi with 12.6%.