Mary Coughlan (Donegal South West, Fianna Fail)

In the year to May 2008, the price of food and non-alcoholic beverages, as measured by consumer price index data compiled by the CSO, increased by 7.8%. The main cause of this increase in food prices has been the global rise in commodity and energy prices. Food prices have increased sharply in virtually all parts of the world and this has affected some developing countries particularly badly. Though I want to make it clear that I am not making any specific forecasts about future trends, there is evidence food price inflation has begun to moderate. The cumulative increase of 1.4% in food prices in the three months to May 2008, for example, was half the increase of 2.8% in the three months to April 2008. The consumer price index data for May 2008 also showed reductions over the preceding month in the price of a number of food items such as eggs, breakfast cereals, cheese and biscuits. The European Commission has stated recent falls in food commodity prices should generally continue, and markets stabilise, in the months ahead.

We cannot insulate consumers from the effects of global increases in commodity and energy prices and it would be misleading to pretend otherwise. We can take steps to ensure we have effective competition at the main points of the food supply chain domestically and that we have informed and empowered consumers willing to use their purchasing power to put pressure on retailers to compete properly on price with their rivals. The Government has asked the Competition Authority to monitor the operation of the grocery trade on an ongoing basis in respect of matters such as the competitive structure of the wholesale and retail sectors and the analysis of price trends. I have also recently requested the National Consumer Agency to undertake broader and more frequent price surveys. Where direct engagement with retailers is justified in the consumer's interest, I will not hesitate to act, as I have done recently, in response to public and Government concern about the apparent reluctance of the retail sector to pass on to consumers the benefits of the euro's appreciation against sterling.

See this speech in context