Agricultural output prices are not keeping pace with the increased cost of inputs, figures from the Central Statistics Office (CSO) confirm.

Despite near record returns for milk, grain and livestock over the last year, the increase in input costs has outstripped output prices by 13%.

CSO data shows that the agricultural output price index rose by 28% in the 12 months to the end of May. However, the agricultural input price index was up by 41.6% in the year from May 2021.

The hike in input costs was driven primarily by surging fertiliser, energy and feed prices.

The CSO data shows that fertiliser prices rose by 164% in the 12 months to the end of May, energy prices increased by 50.5% and feed prices were up 32.6%.

The CSO data on agriculture tallies with its figures on the Consumer Price Index (CPI), which show that inflation topped 9% in June. This is the highest level in almost four decades.

Consumer prices rose by 1.3% from May to June this year, with transport and food the main drivers of this increase. Transport costs rose by 5.1%, while food and non-alcoholic beverages were up by 2.3%.

The CPI identified higher food prices as a key driver of inflation. For example, the average cost of a white sliced pan (800g) rose 13.9c in the year to May 2022, while a brown sliced pan was 16.1c dearer. Spaghetti per 500g increased by 18.3c in the year. However, the average price for 2.5kg of potatoes decreased by 19.3c.

Anthony Dawson of the CSO prices division explained that prices have been rising since April 2021, with an annual inflation of 5.0% or more recorded each month since October 2021.