Rising Food Costs Drive Up Producer Prices Despite Decline in Manufacturing

The Central Statistics Office (CSO) has released new data indicating a 4.2% increase in producer prices for food products over the 12 months leading to June 2025. This rise is attributed to significant price surges in dairy products, which soared by 22%, and meat products, which increased by 6.4%. In contrast, prices for vegetables and animal oils and fats dipped by 16.2%.

The report highlights a mixed scenario for domestic and export markets. While domestic producer prices for manufactured goods rose modestly by 0.5% compared to the previous year, export prices dropped by 5.2%, leading to a 4.6% decrease in overall manufacturing producer prices.

Other sectors displayed varied trends: chemicals and chemical products saw a robust increase of 17.3%, whereas furniture prices rose by 2.7%. Conversely, beverage prices declined by 4%, mining and quarrying by 3.7%, and rubber and plastic products by 3.1%.

Construction products wholesale prices remained unchanged in June 2025, yet showed a 0.7% increase over the past year. Notably, wholesale electricity prices fell by 12.2% within the month and were 11.6% lower than in June 2024.

Deirdre Toher, a statistician from the CSO, commented on the overall 2% decline in the producer price index for manufacturing industries, noting a 2.3% decrease in the price index for export sales and a 0.2% drop for home sales within the month. She also observed that the building and construction index, accounting for materials and wages, remained stable monthly but increased by 1.9% compared to the previous year.

This data reflects the complex dynamics of producer prices amid varying economic pressures, affecting different sectors in contrasting ways.