Grocery inflation has fallen for the fifth month in a row and is now at its lowest level since September 2022, according to new data from Kantar.
The figure now stands at 10.5%, down from 11.3% last month.
Business development director at Kantar, Emer Healy said that while the drop is welcome for shoppers, “inflation still remains high”.
“There is currently a drop in the level of sales sold on promotion. Back in 2020, 27.7% of sales were on promotion versus 24.4% this year. This is down 3.3 percentage points when compared to 2020,” Healy said.
With current levels of grocery inflation in the market, unless consumers make changes to their shopping habits, the average annual grocery bill is set to rise by €176 from €1,677 to €1,853, according to Kantar.
Grocery inflation trends
Trends in the Irish market show that own label goods remained popular in the latest 12 weeks, with sales up 11.5%. This is compared to brands which have grown by 5.1%.
Value ‘own label’ ranges continue to see the strongest growth at 13% with Irish shoppers spending an additional €7.7 million year-on-year, in a bid to save money and control how much they are spending.
Own label brands hold 47.9% share, with branded value share at 46.8% which is the highest share seen for branded products since June 2022.
Warmer than usual weather meant purchases of winter staples were put on hold for another month.
Barbecues stayed out longer than usual and, as a result, Irish shoppers spent an additional €860,000 on chilled burgers and grills, €538,000 on chilled prepared salads, and €2.4 million on ice cream.
Dunnes holds 23.3% of the market growth, of 10.5% year-on-year driven by a strong boost in new shoppers.
Tesco holds 22.5% of the market, with growth of 11.3% year-on-year. SuperValu holds 20.6%, which is a 0.5% increase compared to last month.
Lidl holds a 13.5% share, and growth of 11% year on year. Aldi holds 12.3% with growth of 4% year-on-year.