Food inflation and household costs
Deputy Doherty raised soaring food prices, inflation and the impact on low- and middle-income households. The Minister agreed those on the lowest incomes are most exposed and also warned agriculture is vulnerable to wider price shocks.
What was already post-pandemic inflation has now risen even further as a result of the invasion of Ukraine by Russia. Key commodity prices are skyrocketing, such as for wheat and palm oil, on the global markets and this will impact on Irish households. Figures released by the Central Statistics Office on the increase in food prices in the past year show that bread has increased by 8%, and this is before the consequences of the war have impacted on the prices on the shelves. Price rises, as the Minister knows, do not affect everybody equally. They hit those on low and middle incomes hardest. It was reported that the Government received a briefing on the potential impact of global price rises on the economy and households. We also know that the Minister for Agriculture, Food and the Marine met with the farming sector without any concrete proposals. Will the Minister outline to the Dáil the potential impact of food price rises, which was shared with him? What is the Government's plan to secure our food supply? Finally, what measures will the Government introduce to support households struggling with rising costs?
Comment on this
The energy crisis and food price rises, as mentioned, are at the centre of this. The Deputy is absolutely right that those on the lowest incomes are most at risk and the percentage of their incomes going on basic essentials, such as food and energy bills, puts them at particular risk. It is important that we look at our social welfare system in that regard.
It is very uncertain. We have been looking at inflation rates for the past three months. It was 5.7% in December and then went down to 5.1% in January. My understanding is that, according to the figures release today, the rate was 5.6% for February. It is likely, from what we are seeing because of this war in global food prices going up and increasing energy prices, there will be further pressure. The food issue is particularly serious and grave, particularly for countries in the Middle East and developing countries that are reliant on Ukrainian and Russian grain for their basic daily sustenance and survival needs. First things first, we should be looking to our overseas aid and the Department of Foreign Affairs regarding what we can do to support that.
Comment on this
When it comes to us at home in regard to agriculture, we will also have to be careful because our system is exposed and at risk, particularly the poultry and pig sectors.