Latest data from Kantar shows that grocery price inflation in Ireland hit 16.3%, a record high for the data series.
This means that the average Irish household, if they do not change their behaviour, will spend an extra €1,159 on their annual shopping bills.
However, there is evidence that consumers are changing their habits, with sales of supermarket own-brands far outperforming branded lines.
That budget management is shown in improving sentiment among households with the number saying they are struggling financially down to 23% in December from 32% in October.
There was a small 'veganuary' effect in the sales numbers reported for the first month of the year, with a 4% increase in sales of meat alternatives.
The report from Kantar also showed that nearly one in five Irish households now purchase groceries online.
Dunnes Stores remains the top supermarket chain in the country.