Grocery price inflation continues to climb and hit 6.5% in the 12 weeks to June 12, the highest level in Ireland since February 2013, new figures show today.
Kantar said that rising prices could add €453 to the average annual grocery bill, a figure over €100 higher than predicted in early May.
It noted that some of the sharpest price increases were seen in essentials like butter, eggs, bread, and flour, which are a non-negotiable feature on the shopping list for many households.
Today's figures show that take-home grocery sales for Ireland fell by 4.9% in latest 12 week period under review.
According to Kantar, shoppers are taking additional steps to manage their spending at supermarket tills, and making three fewer trips to the store on average per month than they were this time last year.
"Unsurprisingly, 53% of the consumers we spoke to said that they will be actively seeking out any deals and discounts in store because of inflation," commented Emer Healy, senior retail analyst at Kantar.
"This is clear in the shifting balance between brands and private label, where 66% said that they would swap the branded product in their trolley if a private-label item was cheaper," she said.
"We expect this trend to continue over the next 12 months, and those retailers offering good value, own-label products and promotions will be the most successful in attracting and retaining customers," she added.
But despite rising prices, Kantar said that everyone was keen to make the most of the June bank holiday and were looking ahead to a lockdown-free summer.
"Unlike the Covid-19 restrictions of last summer, we're all busy preparing for our holidays abroad, or even being extra optimistic about the Irish sunshine, and sun cream sales have shot up by 36% compared with May as a result," she said.
The combination of a bank holiday weekend and the start of barbecue season meant shoppers spent an additional €575,000 more on burgers and grilling food this month than they did in May, while ice cream also saw an extra €2.4m in sales.
Meanwhile, sales of savoury snacks and carbonated soft drinks, increased by €1.2m and €930,000 respectively compared to the same time last year.
Today's figures from Kantar also said that Dunnes and Tesco have seen €8.2m more spent between them on their private label lines.
Dunnes' consistently strong performance has now pushed into the seventh consecutive period this year and the retailer is now tied for first place with Tesco with both holding a 22.1% share of the Irish grocery market.
Tesco's performance was helped by a 10% boost in online sales during the month of June, with shoppers spending an additional €2.9m.
Meanwhile, SuperValu now holds 21.7% of the market. Lidl and Aldi follow behind, each accounting for 13.2% and 12.3%.
The online grocery market grew by 9.3% in June, as online channels continue to grow even over two years on from the first lockdown.
"A lot of this growth is coming from families with younger children who are getting organised as the school summer holidays fast approach. They've spent an additional €2.3m on online grocery shopping over June, perhaps hoping to save on extra trips out in the car and avoid the petrol pumps," Ms Healy said.
