Taoiseach Leo Varadkar said today that some prices are coming down for consumers, but added that it was also clear that some food retail businesses are now making substantial profits.
Speaking on Today with Claire Byrne, he said he did not believe that price caps are a good idea but that a windfall tax on profitable companies could be considered.
There are mechanisms by which this could be dealt with, he said.
"As with any company, there are there are ways of working out what their profits are. The Competition and Consumer Protection Commission (CCPC) also has the power to carry out investigations carried out investigations," the Taoiseach said.
Mr Varadkar said the Government is proceeding towards a windfall tax on energy companies and this will be enacted in the next few months and collected before the end of the year.
This money will help families and small businesses with their energy costs, he said.
When asked about his suggestions for the introduction for a 30% tax rate, Leo Varadkar said his priority is to ensure middle income people pay less income tax but added that he is not "particularly hung up" on how this is achieved.
He said there is a commitment in the Programme for Government to index bands and credits to earnings.
This means another substantial income tax package in the next budget, he said.
The Taoiseach said that corporate tax levels are projected to continue for a number of years but "that could change".
Leo Varadkar said it is right to save some of the windfall tax and put it aside as a precaution.
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However some of it should be spent on housing, climate and putting money back in peoples' pockets, he said.
He said decisions around how much should be set aside and spent still have to be made.
He told Today with Claire Byrne that a rising and ageing population means more money must be spent on pensions and healthcare.
Whether you can afford to do this depends on the size of the economy, he added.
