The Irish grocery market grew by 2.6% in the 12 weeks to 9 September compared with the same period last year, according to Kantar Worldpanel.

Yet prices fell by 0.2% at the same time, a trend now established since the start of this year.

Consumers are spending more, buying in larger quantities and splashing out on branded food and drink over the summer – yet supermarkets are keeping the pressure on prices in an intense race for market share.

Competition in the grocery market has rarely been fiercer

“Competition in the grocery market has rarely been fiercer," said Kantar Worldpanel director David Berry.

"Just half a percentage point separates the leading three retailers. Tesco leads the way, registering 22.1% of grocery sales, followed by SuperValu at 21.7% and Dunnes Stores at 21.6%.

"This healthy competition is good news for shoppers, leading to a fall in the price of food and drink across Ireland."

However, this is also affecting suppliers, including fruit and vegetable farmers and food processors, as prices have remained between 0.6% and 0.2% cheaper than last year in reports compiled by Kantar since the first quarter of 2018.

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