Rapid Rise in European Olive Oil and Potato Prices Outpaces Overall Inflation, Strains Budgets of Lower-Income Families
Olive oil prices surging by 75% since January 2021 with Spain, the biggest producer, seeing a 115% increase since August 2021; potato prices rising by 53% since early 2021; nominal wages increase lagging behind at 11%; factors include two-year drought and effects of Russia-Ukraine war.
- 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.
Washington Post 
Associated Press 
