'No indication' of price gouging by Irish supermarkets according to report

THE CONSUMER protection watchdog has reported ‘no indication’ of excessive pricing in the Irish grocery retail market, but that “recent price increases have caused real stress on many households”.

The Competition and Consumer Protection Commission (CCPC) compiled a high-level analysis of the grocery sector in Ireland using publicly available data at the request of Minister for Enterprise, Trade and Employment Simon Coveney last month.

Supermarkets in Ireland have faced criticism over rising food prices, and been accused of contributing to the present cost-of-living crisis.

In its report, the CCPC said that they have found “no indication in this analysis to suggest market failure or “excessive pricing” as a result of an abuse of dominance at this time.”

When compared internationally Irish food prices are generally high, however food inflation in Ireland has been the lowest in the EU, and that competition on price, quality, location and service in the Irish grocery sector has improved in recent years.

The CCPC also recognised that there have been ‘significant gains in market share’ by grocery retailers in recent years, and that reductions in wholesale food prices will take time to reach consumers due to “the lag effect in supplier/retailer contracts”.

“The grocery sector is a critical one for the Irish economy and consumers and that recent price increases have caused real distress for consumers. As part of our work we will continue to monitor this sector,” the report stated.

Commenting on the report, Mr Coveney said: “In my letter to the CCPC I asked them to look at a range of issues relating to the grocery retail sector. I’m pleased to see in their response to me that they have not found any evidence of excessive pricing in the grocery retail market. 

“I’m very conscious that food prices remain high when compared internationally. This report however finds that food inflation in Ireland has been the lowest in the EU in recent years and that changes in input costs may take time to be passed on to consumers,” the minister said.