Dáil Éireann Debate, Tuesday - 20 June 2023
287. Deputy Holly Cairns asked the Minister for Enterprise, Trade and Employment the steps he has taken to address rising rates of food prices, including his engagement with larger retailers and wholesalers; and if he will make a statement on the matter. [29601/23]
View answerI welcome the slowdown in food price inflation in recent months. Over recent weeks we have seen price cuts to a wide variety of goods from some grocery retailers which should contribute to a further easing of food inflation and help customers at the checkout. Though prices are being cut, in May food prices rose overall by 0.4%. While any price rises are unwelcome, this was the lowest rate of monthly food inflation since January 2022.
It is very important that retailers continue to pass any reductions in input costs onto their customers. This was assured to me by grocery retailers in May.
As Chair of the Retail Forum, I met with the retail and grocery sector in May and factors driving inflation for grocery goods, which is higher than the general rate of inflation, were discussed. At the meeting retailers said that, where reductions in input costs filter through to products, consumers will benefit from this. I am due to meet the sector again on 21 June and will request an update on what progress has been made.
Minister Coveney met with the CCPC on 24 May to discuss the ongoing issue of food prices and the costs incurred by consumers on that front. At the meeting, he discussed a number of areas related to competition in the grocery retail market and the powers of the CCPC with respect to competition law. Following that meeting, Minister Coveney wrote to the CCPC to request that they provide their views on the grocery retail market, including on areas such as the level of profitability in the sector, international practices and sectoral trends of pricing practices. He have requested that the CCPC return to him with their views as a matter of urgency.
At the meeting, he also discussed the establishment of the Department of Agriculture, Food and Marine’s new Agri Food Regulator. The Agricultural and Food Supply Chain Bill 2022 provides for a new office of the Agri Food Regulator with powers in respect of market and price analysis and reporting. The establishment of new Regulator will improve fairness and transparency in the agri-food supply chain.
