Overview

• Olive oil prices have surged 75% since January 2021, significantly outpacing overall annual inflation; in Spain, which is the world's largest producer, prices have leapt 115% since August 2021.
• The price of potatoes has also dramatically increased by 53% since January 2021, creating further financial pressure, particularly for lower-income families.
• There is a widening gap between surging food prices and nominal wages, which have only risen by 11% in the European Union, forcing more working people to depend on food banks.
• The inflation of food prices is not only driven by increased energy and labor costs but also by the ongoing Russia-Ukraine conflict, affecting Europe more than other advanced economies, such as the USA and Japan.
• Experts attribute the soaring cost of olive oil to a nearly two-year drought in Spain, higher temperatures affecting crop flowering, and inflation impacting fertilizer prices, leading to a predicted 35% drop in olive oil production for the 2023-24 campaign.