LATEST: Consumer watchdog finds no proof of price gouging in Irish supermarkets

Irish shoppers might be surprised to learn that the Competition and Consumer Protection Commission (CCPC) have found no evidence of supermarkets price gouging as the cost of groceries continues to put pressure on many families.

In a report published on Thursday, 7 August, the CCPC acknowledged that Irish consumers are currently experiencing "a sharp increase in grocery prices", a trend impacting people across the world in recent years. 

The report stated: "This has significantly contributed to the cost-of-living pressures faced by consumers and has sparked widespread public commentary on the underlying reasons for these increases."

Indeed, during a heated exchange in the Dáil last month Labour TD Conor Sheehan accused supermarkets such as Tesco and Dunnes of "price gouging" and "scamming" customers with their clubcards and voucher programmes. 

The comments, which went viral on social media, were made as a motion was raised in the Dáil by the Social Democrats on the transparency of supermarket profits as the cost of living in Ireland continues to put pressure on most people across the country. The motion had been widely supported by Opposition parties.

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However, Thursday's report has found that no evidence of such price gouging and instead it indicated that competition within the Irish supermarket is working well and is improving.

According to the report, the increased competition in the market in the past 20 years has brought "sizeable benefits" for customers. In fact, food price increases in Ireland have been "well below the European average" and this coincides with the increase in competition in the market.

Basically, food prices in Ireland are high internationally speaking. However, food inflation in the period analysed in the study has been the lowest in the EU.

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When it comes to profits among supermarkets, the CCPC said that the available data "does not indicate that margins are notably high when compared to international comparators."

The report also states that there have been "significant price increases" since 2021 which have had a very "real impact on consumers both in Ireland and across Europe."

One of the key influences identified by the CCPC for these increases is the rise in costs for some agricultural products which have been higher in Ireland than the European average.

In what is some positive news for Irish shoppers, the CCPC said: "While grocery prices have increased significantly since 2021, they have done so at a slower pace than some of the key input costs, such as agricultural prices. This suggests that competition in the grocery market has helped limit the impact of increased agricultural prices on Irish consumers."