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21 Aug, 2023 06:41

Olive oil may become unaffordable for Spaniards – El Mundo

Prices for this basic item surged 115% year-on-year in August, data shows    
Olive oil may become unaffordable for Spaniards – El Mundo

Spanish authorities are sounding the alarm over olive oil prices, which continue to rise and may eventually turn this Mediterranean staple into a “gourmet product,” the newspaper El Mundo reported on Friday, citing sources in the Ministry of Agriculture.     

Olive oil from Andalusia soared to €8.20 ($8.90) per liter last week, marking the highest price ever recorded for Spanish olive oil, according to data from Mintec, representing a 115% year-on-year increase. Meanwhile, the price surge continues.    

“The market takes it for granted that prices will keep rising until at least the end of the year,” the outlet noted, adding that extra virgin prices are expected to reach €10 per bottle by autumn.     

Shelf prices for olive oil in a number of Spanish supermarkets have already surged to €8.50 per liter making the product almost unaffordable for middle-class households, the outlet said.     

The Spanish olive oil sector is currently grappling with mounting concerns regarding availability in the coming months following the severe drought that Spain has been experiencing since last summer.     

In the agricultural year of 2022-2023, olive oil output in Spain more than halved to 675,000 tons, representing a 54.7% slump year-on-year. This made the country's current output volume the worst so far this century, the outlet wrote, citing data from the Agriculture Ministry.     

The July report from the Spanish government also revealed a significant reduction in stocks, which declined by approximately 73,000 to 75,000 metric tons last month.

For more stories on economy & finance visit RT's business section

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