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We're paying more for food... again

Grocery prices in three major supermarket chains have increased by more than five per cent since last year, new figures show.

THE AVERAGE COST of a basket of groceries has increased significantly last year, even as households nationwide continue to struggle financially.

Latest figures from the National Consumer Agency showed prices on a selection of everyday items had risen by more than five per cent in three of the country’s major supermarkets since July 2010. At Superquinn the increase was 5.7 per cent, while at Dunnes Stores it was 5.5 per cent and Tesco 5.4 per cent.

According to a separate survey from Kantar, overall grocery prices have risen by 3.9 per cent year on year.

The survey also found that there was a high level of price-matching between supermarkets, with retailers focused on “matching, but not beating” their competitors. Some 37 per cent of the 92 everyday products assessed had identical prices at Dunnes, Tesco, Superquinn and two SuperValu stores. Aldi and Lidl were not part of the survey.

NCA chief executive Ann Fitzgerald said price matching “remains the case, as we see first and second ranking in our survey separated by just 0.02 per cent, with a difference across all of the retailers of just 3.4 per cent. Rather than seeing the emergence of a real champion of better value, we observe that grocery retailers in the Irish market remain tightly focused on matching, but not beating, the prices of their competitors.”

On a basket of 92 common branded products Tesco and Dunnes shared the lowest total bill, with a difference of just four cents between them. Superquinn was 1.3 per cent more expensive. Two SuperValu stores were surveyed as the chain does not have a national pricing policy, and were found to by 3.4 per cent more expensive than the lowest price.

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9 Comments
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    Mute Alison Hodnett
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    Jul 13th 2011, 10:35 AM

    The results of this survey are sickening yet unsurprising, the Irish are very passive as consumers, we don’t protest, we don’t complain to the likes of these retailers and we don’t pressure our politicians to bring about effective change.I could just about accept all the pay cuts, levies and extra charges if the cost of living was falling significantly but a huge number of househlolds ,employed and unemployed are struggling due to the inflated cost of living in our bankrupt and rip off republic. It’s Lidl and Aldi all the way for me.

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    Mute Robert LYNCH
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    Jul 13th 2011, 10:04 AM

    We really are responsible for the situation we find ourselves in when the opportunity to force prices down through a haphazard form of collective bargaining is missed. Really — if prices do not decrease now, when we are seemingly completely broke, then when will they ever reduce? Or maybe, just maybe, we are not all so broke? Perhaps DIRT, pension and investment taxes including home-owners tax and an even larger 2nd household tax should all be put in place or increased. Those who still retain wealth from the Celtic Tiger, especially those with fixed wealth should be taxed! (i.e. people should not be encouraged to hide there savings in other countries or under their bed but a small percentage of the interest or benefit of having wealth should be taxed.)

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    Mute Eugene O'Rourke
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    Jul 13th 2011, 1:33 PM

    The problem is diesel has got so expensive. About 20 cent a litre more than last year. If a truck takes say 800 litres of fuel thats an extra €160 to fill the truck and hauliers just cannot absorb this rise in fuel.

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    Mute Oisín Ó Dálaigh
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    Jul 13th 2011, 1:29 PM

    Its a shame there’s no regulation prohibiting price-matching (i.e. a competitor may charge a lower or higher price but not an exact match) to stimulate real competition in the grocery retail market.

    Of course if there was, the companies involved will then complain that its too hard to keep track of competitior pricing, even when it appears simple enough for them to do it now.

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    Mute Oisín Ó Dálaigh
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    Jul 13th 2011, 1:30 PM

    Oh and ditto for petrol stations.

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    Mute Barry R.
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    Jul 13th 2011, 1:52 PM

    Unfortunately Ireland consumers have supped at the table of the Tesco satan, and there seems no going back.

    Thats why prices won’t reduce …. Tesco lead grocery pricing with the others following.
    The stronger Tesco gets, the weaker consumer power gets

    Indeed also remember that its not only consumers that suffer, the suppliers are being fleeced too.
    In the vast vast majority of cases, its the suppliers that fund the price discounting not the retailer.

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    Mute David Killeen
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    Aug 11th 2011, 11:55 PM

    There’s a reason the guys running tesco referred to this country as ‘treasure Ireland’, AND why they will release their UK profit margins but not their Irish ones… Pile of C*nts

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    Mute Lyndon Bailey
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    Jul 13th 2011, 11:39 AM

    Could it have anything to do with energy costs?

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    Mute Oisín Ó Dálaigh
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    Jul 13th 2011, 1:32 PM

    Only if you mean it saves the companies energy in calculating their profit margins while screwing consumers left, right, and centre regarding costs.

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