Breakfast came at a premium in 2022 as cereals and eggs saw largest price hikes

Food prices overtook energy as the fastest rising item in the 20-member eurozone last month. Photo: Getty Images

Food prices overtook energy as the fastest rising item in the 20-member eurozone last month. Photo: Getty Images

Food prices overtook energy as the fastest rising item in the 20-member eurozone last month

Food prices overtook energy as the fastest rising item in the 20-member eurozone last month. Photo: Getty Images

Sarah Collins

March 10 2023 12:18 PM

Cereals, eggs and milk drove price rises for agricultural products across the EU last year, Eurostat has found.

Prices for potatoes, poultry, pigs, cattle and olive oil were also up substantially across the bloc between 2021 and 2022, the EU’s statistics agency reported on Friday.

Ireland saw the seventh-highest rise in milk prices in the 27-member EU at over 40pc. Milk prices rose the fastest in Latvia and Lithuania at close to 50pc.

Ireland saw the third-lowest price increases for cereals in the bloc, with Romania, Hungary and Poland the worst affected.

Russia’s invasion of Ukraine in February 2022 has caused a major disruption in exports of grains, wheat, maize, oilseeds (particularly sunflowers) and fertilisers.

Drought and the rising cost of energy have added to supply issues, causing shortages and price hikes, particularly for highly processed foods and the main ‘inputs’ used to produce them.

On average, agricultural goods prices rose 24pc between 2021 and 2022, Eurostat found.

The sharpest price hikes were for cereals (up 45pc), eggs (up 43pc) and milk (up 31pc). Fruit prices fell 3pc, the only item to show a decrease.

Average prices rose sharply for agricultural inputs, including fertilisers and “soil improvers”, which were up 87pc, with energy and lubricants up 59pc.

The figures come after Irish supermarket prices rose to record highs in February, according to research firm Kantar.

Grocery price inflation rose to 16.4pc in the 12 weeks to February 23, adding an extra €113.56 to each shopper’s grocery bill in February compared with the same period last year.

While inflation does show signs of slowing, Kantar research showed price rises are leading to consumers purchasing less in store, with volume per trip down 10.9pc in February.

Food prices overtook energy as the fastest rising item in the 20-member eurozone last month, Eurostat reported recently.

Experts say that despite signs of inflation slowing - bar a blip in February - the price of milk, eggs, breakfast cereal and chicken is likely to stay elevated.

The continued feed-through of higher energy prices and ongoing shortages of tomatoes, cucumbers and peppers due to bad weather and higher costs will put pressure on particular foods this year, economists say.

The Central Bank predicted this week that consumers are unlikely to feel positive changes to their purchasing power until the end of 2024, despite inflation falling and wages on the rise.