The Economic and Social Research Institute (ESRI) has issued a warning that Irish consumers could face additional increases in food prices later this year. This comes as a result of what the ESRI describes as ‘second-round effects’ from rising energy costs.
Higher energy costs have already been influencing a range of sectors, but their impact on food prices is expected to intensify. These secondary effects occur when initial rises in costs, such as energy, filter through to other goods and services, pushing prices higher across the board.
The ESRI’s analysis suggests that households could experience increased financial pressure as these effects take hold, potentially affecting spending power and economic stability.
While the full extent of the impact remains to be seen, consumers are advised to prepare for a potential tightening of budgets as these developments unfold.
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