Food price inflation falls to lowest level for a year

Intense price competition within the Irish grocery market shows no sign of letting up, the latest Kantar Worldpanel data shows

Kantar Worldpanel in Ireland has published its latest supermarket share figures showing a decrease in price inflation

Print

Print

News

Kantar Worldpanel in Ireland has published its latest supermarket share figures for the 12 weeks ending 10 November, showing a decrease in price inflation to 2.9%. The figure, which has remained above 4.0% for the past 12 months, is a significant fall from the 6.4% recorded in January.

It is believed this new reduced figure will be a relief for shoppers in the run up to Christmas. Commenting on the result David Berry, commercial director at Kantar Worldpanel, explains: "Fresh food has been the main driver of price inflation over the past year and this has now started to recede, for example vegetables are now cheaper on average than they were last year."

He added: "This drop in price inflation has caused the value of the grocery market to slip into year on year decline, following six months of sales growth as consumers continue to focus on value and savvy shopping."

It is pointed out however that pressure still remains on alcoholic drinks. Increased duty on alcohol, introduced as part of the October budget, has affected wine in particular, where the average price has increased by 16%. As a result, 51,000 fewer shoppers have put wine in their baskets.

Tesco seen a 6.0% drop in sales leading to its share of the market dropping from 28.0% to 26.5%. Berry explains: "Dunnes performed ahead of the market for the third successive month, and has grown its market share from 23.0% to 23.6%. SuperValu’s share of the market has increased slightly with sales remaining in line with last year."

He added: "Discounter Aldi continues to set the pace; however this is the first time its year on year growth has dipped below 20% since April 2012, highlighting stiff competition in the grocery market."

Related Articles

A twin triumph for the IGBF fun run →

Musgrave MarketPlace invests €2.5m in Ballymun Food Emporium upgrade →

Aldi introduces Mamia First Infant Milk  →

Slainté: Tradition in a bottle! →