Due to higher prices for meat, sugar, frozen fish, milk and eggs, the prices of food and non-alcoholic goods rose by 12.7 percent this year.
This is a slight decrease from food inflation in April, when food costs rose 13.1 percent in the year, according to the latest consumer price index from the Central Bureau of Statistics (CSO).
Stall prices rose in May despite major supermarket chains lowering the prices of private label milk, bread and butter.
There were price increases for an 800 g sliced white loaf of bread, with an increase of 18 cents in one year.
A major retailer reduces prices by an average of 10 percent on more than 700 products
A loaf of 800 g brown sliced pan was 17 cents more expensive in the year, with 2 liters of whole milk 35 cents more expensive.
A pound of butter was 40c higher compared to May last year, the CSO said.
Total prices of goods and services rose by 6.6 percent in May compared to a year earlier.
This is less than an annual increase of 7.2 percent in the 12 months to April.
This is the 20th month in a row in which the annual increase in the consumer price index is at least 5 percent.
CSO statistician Anthony Dawson said: “The annual change in the cost of food and non-alcoholic beverages reflects an increase in prices for a range of products such as sugar (+42.5 percent), frozen fish (+28.1 percent) , fresh whole milk (+18.9 percent) and eggs (+18.8 percent) compared to May 2022.”
He said education and transportation were the only divisions to show a decline compared to May 2022.
Consumer prices rose by 0.3 percent in May.
This is lower than last year, when there was an increase of 0.9 percent in the same month.
The main monthly price changes were increases in restaurants and hotels and in alcoholic beverages and tobacco.
Restaurants and hotel prices increased due to higher prices for hotel accommodation and higher costs of alcoholic beverages and food consumed in drinking establishments, restaurants and cafes.
It’s because Tesco said it was lowering prices on hundreds of products, while other retailers said they are now reviewing their prices.
Tesco cuts prices by an average of 10 percent for more than 700 products.
A major retailer reduces prices by an average of 10 percent on more than 700 products
The price cut is sure to force a reaction from rivals Dunnes Stores, SuperValu, Lidl and Aldi.
The price cuts are a step up from the recent price cuts of own-brand bread, butter and milk announced by major supermarket chains.
Finance Minister Michael McGrath said he expects other retailers to pass on input cost cuts in response to Tesco.
“These cuts are very good news for consumers and I think it will be very welcome,” he said on RTÉ Radio 1’s ‘Morning Ireland’.
“Everyone has seen the really significant price increase over the last 18 months. This could be a major turning point with regard to consumer food prices.
“We know that people are very price sensitive, they go shopping and they vote with their feet. I would expect other major grocery retail providers to respond. But that’s a matter for itself, but people will certainly respond to good offers, and I think they’ll adjust their shopping pattern accordingly.”
He said when input costs fall, the government expects retailers to pass on the benefit to consumers.
He added: “So this is potentially a pretty significant turning point given the number of products that are now going to benefit from this cut and given the market forces out there and the price sensitivity of consumers. I think it’s just a matter of time. before other grocery stores respond.”
