Irish shoppers warned that food prices could rise again later this year

Irish shoppers have been warned that food prices could increase again in the next few months.

The warning comes from the Economic and Social Research Institute (ESRI), which says that high energy costs linked to tensions in the Middle East are likely to increase prices on the supermarket shelves over the coming months.

In its latest Quarterly Economic Commentary, the ESRI explained that there is typically a delay of around nine months between increasing fuel prices and the impact seen on food costs.

Although oil and fuel prices have eased in recent days, economists still say that Irish shoppers should expect a "lagging effect."

ESRI Director Professor Alan Barrett warned that the effects of earlier energy price increases have not fully worked their way through the Irish economy.

"There will be a lagging effect," the director said, adding that food prices are expected to rise more as businesses deal with higher costs.

"The impact of the war on food prices will come at both ends of the production process, and affect both domestic production and imports," the ESRI added.

In addition to this, Irish and UK grocery markets are linked, and forecasts are already estimating a 9% increase in prices across UK supermarkets this year. The ESRI also confirmed that low and middle income families are likely to feel the greatest impact of increased grocery bills, as food makes up almost 15% of total costs.

Researchers are asking policymakers to "closely monitor" prices towards the end of the year.