Details of the euro zone price survey brought contrasting reactions from either side of the retail counter yesterday, with the Consumers Association saying the results would be "no surprise" to most people, while grocers' representatives strongly criticised some of the report's conclusions.
RGDATA, the group that represents 4,500 independent grocers, said Forfás had found no evidence of a "euro price rip-off" for consumers of grocery products.
However, the organisation's director general, Ms Ailish Forde added that she was "amazed" at how a study which appeared to conclude that high prices were largely confined to the services sector could recommend re-examination of the Groceries Order and the retail planning guidelines.
"It is even more remarkable as the report found that \ prices in Ireland are far lower than prices in the UK, where there is a proliferation of superstores, hypermarkets and below-cost selling."
The chief executive of the Consumers Association said the only surprise of the survey was its apparent emphasis on the services as the main contributor to increased prices.
Mr Dermot Jewell added that in its general thrust, the report confirmed what consumers already knew, "that prices are unrealistically and unaffordably high" in the Republic. "Most of the calls we've had today have been from people talking about the cost of groceries. Consumers have had to make hard choices about what they can and cannot afford. One woman rang to say she's had to stop buying cheese, for example, because it's become so expensive."
RGDATA disputed the claim, saying that while there "seems to be a perception" that food costs were rising fast, "the facts just don't back this up".
However, the two groups appeared to agree that the Forfás finding of higher prices in Britain called into question the value of superstores from the consumer point of view.
"We've always said that if the ban on below-cost selling was lifted, there would be immediate benefits, but these would be short-lived," Mr Jewell said. "Things would just level out again eventually and we'd be left with the big three [Dunnes Stores, Superquinn, Tesco] doing what they do now."
He said the report also confirmed what the association knew from its own surveys, that the rising trend of prices was well established before the introduction of the euro. There had undoubtedly been profiteering under cover of the new currency, he said, but the euro had also benefited consumers by making comparisons with other European countries clearer.
The task now was for the Government to "find out how we got here", but he admitted the Consumers Association had no suggestions for a quick-fix solution. "It's very difficult. Consumers have some control when it comes to buying groceries, but if you need to attend the doctor or dentist, you have very little power to get them to reduce prices."
