Consumers facing 10pc increase in food prices
BEER, chocolate, bread, butter, cheese and other food prices could rise by 10 per cent or more in supermarkets, as massive commodity volatility continues.
"A stream of major US household-food brands are all announcing price rises on products including cereals, cheese and meat," Trinity College economist Constantin Gurdgiev said.
"So as a result we can certainly expect the same to happen in Europe and in Ireland. If things continue, there will be double-digit price increases at the till. All we can say with any confidence is prices are going up and it's going to be long-term," he added.
Thursday's grain export ban in Russia, one of the world's largest exporters, added further to ongoing global food market vulnerability.
A repeat of the agflation that saw food prices rocket in 2007 can't be ruled out, according to Mr Gurdgiev.
"We have seen the largest monthly increase in wheat prices since 1969, with an increase of over 42 per cent in July alone. There have been increases of six to eight per cent each day since," he said.
Consumer food prices in Ireland are already the second-highest in the EU, after Denmark, and a whopping 29 per cent higher than the eurozone average, Eurostat figures show.