The price of certain food items in the supermarket this year, a leading economist has said. 

Inflation is expected to drop to 3.2% this year and decline further to 2.3% in 2025, following years of surging prices. 

“Food prices are still rising but not as fast as they have been over the last couple of years,” economist Austin Hughes said. 

“There’s been some encouraging announcements from some of the retailers in recent days that suggest that we’re going to see a further slow down in food price inflation and some declines in some food price items.” 

A shopping trolley full of food. Picture by: Leah Farrell / RollingNews.ie

The cost of energy remains higher than before the invasion of Ukraine but that too is coming down. 

“Energy prices fell by 2.6% this December [but] they fell by 6.5% a year ago,” Mr Hughes said. 

“That means that prices were falling faster a year ago and that means that you have what’s called a base effect that picks up the results in higher inflation.” 

His views were echoed by Finance Minister Michael McGrath who said it would be easier this year for people to make ends meet, citing tax cuts and social welfare increases that kick in this month. 

“There will always be challenges in society,” he said. 

“But in the round, it is certainly my view, that 2024 will represent progress in reducing that burden of cost of living that many have faced over the last years.” 

Main image: A woman shops for vegetables at a supermarket.