Prices rise for coffee, tea and frozen food... but dairy and veg are only getting cheaper

New report reveals impact of inflation on shoppers

SHOPPERS are paying more for certain foods now than 12 months ago, a new report has shown.

Overall, prices are just 0.6% higher than this time last year, but healthcare items such as cold medicine and vitamins are up 8%, tea and coffee is up more than 5% and frozen food is up 4.6%.

While the price of frozen veg, chips, pizza and meat is up, staple dairy products like milk, cheese and yoghurts are down 2.2%. Vegetables and salads are also down 1.7% and fruit has seen a slight drop of 0.9%.

The easing of Covid restrictions means people are eating out more, which is a blow to supermarkets but a relief to the nation’s restaurateurs.

Emer Healy, retail analyst at Kantar, the company that compiled the figures, said: ‘It’s a nuanced picture in the grocery market at the moment. The lifting of social restrictions and high vaccination rates mean shoppers are more comfortable going out and visiting physical stores, but they also mean people’s social calendars are filling up again.

‘More socialising means we’re

‘Supermarket trips are falling by 4.5%’

living less regimented lives, and with more eating at restaurants, pubs and on the go, the reliance which many had on supermarkets to get their meals last year is starting to fade.

‘That is evidenced in the latest four-week-ending data, which shows supermarket trips are falling by 4.5% year-on-year and the amount bought per visit is also down 0.9%.’

Another side-effect of increased socialising is a renewed boom in online grocery shopping, which is up more than 7% in the past four weeks.

The further loosening of social restrictions on October 22 is not expected to herald major changes for the grocery sector.

Ms Healy added: ‘The relaxation of restrictions in Ireland has been a gradual process and people have already been enjoying increasing freedoms, with knockon effects at supermarket tills.

‘We expect office workers to continue to work flexibly, which will mean a mix of both in-home and on-the-go eating at lunchtime. People are already back visiting pubs and restaurants too, so there shouldn’t be a major change in that sector either.’

The arrival of a more open Halloween means pumpkin sales are up 32% compared to this time last year.

And as people get ready for the arrival of trick-or-treaters to their doors, confectionary sales are up more than 6% and share-bags of chocolate are up more than 15%.

The Kantar report said: ‘Despite prices going up, consumer confidence is high. Dunnes was the only retailer to recruit new shoppers this period as it and Tesco found favour through more premium items.’

Ms Healy added that Dunnes typically has its most successful months in the autumn as shoppers favour branded items and take shelter from the unpredictable weather in its stores.

She continued: ‘New customers contributed an additional €26.2million to its performance and Dunnes now accounts for 21.9% of grocery sales.

‘Tesco’s market share increased 0.5 percentage points to 21.4% and it also enjoyed success through branded items – it saw customers spend an additional €13million on well-known names this period.’

Covid has changed how people shop with almost one in five stores now offering a click-and-collect service, a study by the Central Statistics Office found.

Statistician Colin Hanley said: ‘The Covid-19 pandemic has made enterprises across Ireland change how they do business. One in ten have set up a website to facilitate online sales while 18% provided a click & collect service.

‘Almost one in five – 19% – have indicated that they have seen an increase in sales through websites or apps. One in 12 have set up a new social media account while 31% have increased their use of social media during the pandemic.

‘In 2021, 82% of enterprises in Ireland have a website or a homepage.

‘This compares to 79% of firms in 2020 and 2019.

‘The most common facility provided by a business on their website or homepage were links to references to their social media profiles – 43% – followed by a facility to access online ordering or reservations, 27%.

‘Four in ten enterprises conducted sales electronically. Large enterprises of 250-plus people had a higher proportion of firms selling electronically at 63% compared to 36% of small businesses. More than half – 54% – of enterprises made purchases electronically.

‘A third 33% of enterprises received orders online from customers based in Ireland while 10% received orders from the EU.’

‘Confidence is high despite price rises’