Families are ditching branded goods and spending less to counter soaring inflation, the latest research shows.
Tesco, Lidl and Aldi own brands are spiking in sales as people try to evade the highest food inflation in more than 20 years.
Families are switching everything from crisps to dairy products such as milk and butter to save money - even over Christmas when branded foods tend to do much better.
Consumer experts now believe that this trend will continue for Easter dinner, when families are expected to make do with cheaper brands.
People are also switching to easy microwaveable "TV dinners" to save money, with an additional €14.5million spent on chilled convenience foods over the past 12 weeks.
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The wholesale price of milk is at its highest price ever, which has a knock-on effect on the price of butter, cream, cheese and yoghurts.
As purses are squeezed by annual grocery price rises of 7% in the past 12 months, the average weekly grocery shop has fallen from €150.87 a year ago to €142.42 now, a drop of €8 or 5.6%.
Over a year, that would amount to a saving of €416. Prices are rising so fast that the Consumer Association of Ireland's annual price survey of a basket of goods has been delayed as the cost of individual items is changing so quickly.
Retail research company, Kantar, which carried out the research, said it expects inflation to become even worse for families.
And it is what savvy shoppers are buying that has led to the savings - people are switching from branded products to supermarkets' own labels, the new research from Kantar has found.
People are also switching to different supermarkets to seek out the best bargains.
Kantar's Emer Healy said: "Shoppers are moving out of branded goods to premium own-label. Supermarkets make it really convenient for shoppers to dip out of brands and into private labels, they're on the same shelf.
"We usually see brands performing incredibly well in seasons such as Easter and Christmas etc, whereas over the course of 2020 they outperformed private labels for the entire year whereas now, even over Christmas, we saw premium private labels grow and saw brands decline," she said.
"Over Christmas people still want to indulge, they still wanted to feel like they were treating themselves and their guests. Higher average prices are going to make people choose where they're going to shop and also when they're in-store they're looking for everyday low prices, say a packet of Tayto crisps compared to a Lidl own-brand. They're switching to own brands because they're being price-conscious.
"The market is in flux at the moment and I think it's only going to get tougher and pressure on households is definitely going to be seen.
"It seems to be hitting shoppers from every angle at the moment." The shopping list Kantar monitors includes non-food supermarket items, such as washing-up liquid and washing powder.
The wholesale price of a litre of milk has reached its highest ever at 40c a litre - double its price in 2009 - which has a knock-on effect on the price of butter, cream and yoghurts too.
Taoiseach Micheál Martin promised to announce new measures to tackle the rising cost of living later this week.
That will largely be funded by revenue from the carbon tax, he said but rejected calls to defer increases to the carbon tax due to be introduced in May, which will further drive up energy costs for consumers, saying Government must not give in to 'short-termism' in the face of the climate crisis.
The Taoiseach admitted there has been a "phenomenal" rise in energy prices. He said the Government wants to "cushion" people from the worst impacts, but said the picture for the rest of the year is uncertain, with economists divided on how the situation will unfold.
An immediate but temporary cut in the VAT rate would help curb soaring prices, suggested Consumers' Association of Ireland chief Dermott Jewell. "The price rises are of serious concern," Mr Jewell said.
"That level of inflation in the short term with no level of easing whatsoever in the interim period really spells challenges.
"I know Government is reviewing it and looking at it closely but I don't think this is going to be a simple solution issue as long as this level continues.
"The challenge for many is so onerous at the moment, it must be quite a difficulty for a great number of consumers to figure out how they're going to manage to pay their way.
"This could dramatically change lifestyle for so many, it's the highest in 20 years, it's extraordinary."
Overall inflation is 5.5% and the last time it was higher was in April 2001, at 5.6% as the economy was roaring during the Celtic Tiger boom years.
Household budgets are coming under pressure as grocery price inflation reached its highest level since October 2020 in this 12-week period at 1.7%, which equates to an annual rate of rate of 7%, the highest for more than 20 years.
Kantar's Ms Healy added: "The number of products being sold on promotion has dropped by 3% compared with last January. We're already seeing evidence of people starting to shop around at different retailers to try and find the best price for their weekly shop."
Meanwhile, Junior Finance Minister Seán Fleming urged people to stop complaining and shop around to switch energy providers and supermarkets.
The Fianna Fáil TD told RTÉ's Drivetime: "If you move around you can get better prices and that's in our own hands."
Images: Photocall Ireland & Getty
