For the month of January, food prices are estimated to have risen by 0.2pc in the last month and increased by 3.9pc in the last 12 months, the Central Statistics Office (CSO) said.
This is compared with overall inflation at 2.6pc in the year to January.
This is down by 1pc from the December figure, according the EU Harmonised Index of Consumer Prices (HICP) “flash” estimate for Ireland.
This index is different to the consumer price index which also measures inflation. The harmonised index does not account for mortgage costs.
The CSO said the flash estimate of the harmonised index shows that energy prices are estimated to have fallen by 0.8pc in the month, but they were up by 0.3pc over the 12 months to this month. This likely reflects petrol and diesel prices falling at the pumps, due to lower crude oil prices.
Service prices have fallen by 1.1pc in the month and risen by 3.3pc in the 12 months to January 2026.
Rising food prices are a strain on family budtgets.
News in 90 Seconds – Friday, January 30
The latest figures come as SuperValu has cut the price of Kerrygold by 50c, the first time we have seen a branded product price cut in ages.
Prices of Kerrygold butter products will be reduced at SuperValu and Centra stores across the country, according to Musgrave, the Irish food wholesaler behind SuperValu and Centra.
The reductions will be worth up to 9pc across the Kerrygold range, with customers due to save up to €0.50 on Kerrygold products.
This will see a range of Kerrygold branded butter products reduce from €5.49 to €4.99 and from €3.29 to €2.99.
For example, the price of Kerrygold Creamery Butter (227grm X 40) will be cut by €0.30 from €3.29 to €2.99, while Kerrygold Butter (454grm X 30) will be reduced by €0.50 from €5.49 to €4.99.
Earlier this month SuperValu cut the prices on 500 grocery staples SuperValu aimed at winning back market share for the company.
The supermarket chain has reduced prices by up to 10pc.
Lecturer in retail management at TU Dublin, Damian O’Reilly, said the price cuts were a marketing strategy by SuperValu owner Musgrave in a bid to regain market share.
He said the group’s market share has dropped below 20pc, with Lidl now closing what had been a significant gap.
The chain, which has 221 stores nationwide, has cut the price of fresh fruit, vegetables, dairy and meat products, nappies, pet food, firelighters, tea, coffee, orange juice, Parma ham, soups, bin bags, biscuits and others.
Musgrave, which is the owner of the SuperValu franchise, recorded €2.6m in profits each week in 2024, the most recent figures show.
It comes as a majority of consumers said they were “disappointed” with official attempts to ease the cost-of-living crisis.
A majority of consumers said they were “disappointed” with attempts to contain the cost of living, according to the latest Credit Union Consumer Sentiment Index for December.
Consumers are grappling with rising grocery prices, higher energy costs, increases in the cost of petrol, diesel and tolls, rising insurance and property tax bills.
There were no energy credits and no income tax changes announced in the budget for this year.