A hike of almost €800 per year in the price of a basket of everyday goods could be enough to "break" many households this winter, consumer experts have warned.
The latest figures from market research specialists Kantar show inflation at the high street supermarkets hit just under 12% year-on-year in the 12 weeks up to September 4. The increases represent the highest rate of inflation on consumer goods since Kantar began tracking prices in 2008.
It warned consumers that the price of a basket of goods will rise by €768 per annum up to €7,753 unless they make changes to how they shop.
The stark warning came as President Michael D Higgins launched a stinging attack on both world leaders and the United Nations for allowing a food speculation system which is “gambling on people’s lives”.
The price hikes outlined by Kantar will particularly affect parents in their back-to-school spend, with the price of essentials like bread, ham, yoghurt, cereal and milk rising by a massive 19% over the past month alone. That translates to a jump of €2 for a basket of those staple products alone.
“The figures reflect reality and the reality is not positive,” said Dermott Jewell, policy adviser with the Consumers’ Association of Ireland, adding that there is “no question that this will break some families”.
“At best it will determine some very significant changes in the manner in which people live. The reality of life is that there is only x amount of money which can be spent on a finite amount of products, and if prices keep going up like this then you have to either cut back or cut out what you’re buying.”
He added that in terms of how families are impacted the budget will be key. “A lot will depend on what happens on September 27 (Budget day). It will have to be significant in its impact to give any real confidence to consumers in terms of what they possibly can do as opposed to what they know they can’t continue to do.”
Jim Walsh, spokesperson for charity St Vincent de Paul, said the situation is of “great concern”, adding that 2022’s cost-of-living crisis has seen the number of calls for help fielded by the organisation jump by 20% up to the end of August.
“People are having to make difficult choices in terms of what they can pay or should pay,” he said.