Food prices in Ireland rose at their fastest pace since last year, with new figures from the Central Statistics Office (CSO) showing food inflation reached 5.1% in August. This marks the highest level since December 2023, when the annual rate stood at 5.6%.
The CSO reported significant increases across a range of everyday staples, including butter, milk, bread, and beef. The sharp rise in food costs has been a key driver of the broader increase in consumer prices, which climbed by 2% in the year to August. That compares with a 1.7% annual increase recorded in July and is the first time inflation has been at, or above, 2% since April, when it hit 2.2%.
When measured by the Harmonised Index of Consumer Prices (HICP), which excludes mortgage interest costs, inflation rose to 1.9% year-on-year in August, up from 1.6% a month earlier. The index is used across the European Union for a more consistent measure of inflation between member states.
While food costs led the increases, other categories also saw notable price changes. Clothing and footwear prices rose by 3.4% in August compared with the same month last year, reflecting both higher input costs and shifting consumer demand. By contrast, transport costs eased, falling 2.3% year-on-year, providing some relief for households amid higher living costs in other areas.
The CSO also published its National Average Prices for selected goods and services, illustrating the impact of inflation on shoppers’ weekly bills. A kilogram of Irish cheddar cheese rose by 93 cent compared with a year ago, while a pound of butter increased by 91 cent. The price of two litres of full-fat milk went up by 28 cent, while bread also became more expensive: an 800g white sliced pan rose by 7 cent and a similar-sized brown sliced pan by 4 cent. Even small pantry items edged higher, with 500g of spaghetti up by 1 cent.
Economists warn that while overall inflation remains below the peaks seen in 2022, the steady rise in food prices is squeezing households, particularly lower-income families who spend a greater share of their income on groceries. The persistence of food inflation also raises concerns for policymakers, with the European Central Bank continuing to monitor price pressures across the eurozone as it weighs future decisions on interest rates.
The latest figures underscore the challenges facing Irish consumers, who have seen living costs rise sharply in recent years despite some easing in energy and transport prices. For many, the steady climb in the cost of essentials such as dairy, bread, and meat highlights that the cost-of-living crisis remains far from over.
