Olive oil prices continue to rise in Spain. Recent data from Spanish National Institute of Statistics (INE) shows that in September the price experienced the highest year-on-year increase in 21 years.
Olive oil cost 67% more than in September last year and 10.1% more than in August this year. From March 2021 to September this year, the price of olive oil increased by 136.6%, i.e. more than doubled. The price of the so-called ‘liquid gold’ has risen for 29 consecutive months until September.
The price of olive oil started rising in April 2021, when it recorded a 2% year-on-year increase. By May, it reached 5%. Since then and for 28 consecutive months, the price has risen by double digits.
The cause of the price rise
Farmers point to drought as the cause of higher olive oil prices. The lack of water has caused a poor harvest for the second consecutive year. Production is not reaching the level needed to meet demand. The latest figure, for September, shows that olive oil cost Spanish households 10.1% more than in August.
Also read: Drought sparks panic buying of olive oil
More than 22 litres of oil per household
The INE data also shows that the average consumption of olive oil per household in Spain was 22.1 litres in 2022. This is the highest figure since 2018, when a household consumed an average of 22.2 litres. That is still far below the 30.4 litres consumed on average per household in 2007, the year the financial crisis erupted.
During the first year of the pandemic, the average consumption of olive oil per household was 20.5 litres. When Spain returned to normal, this rose to 22.1 litres in 2022.
The average expenditure per household on olive oil was €97.7 last year, compared to €77.6 in 2021.In other words, last year households spent an average of €20.1 more on olive oil than in previous year. It is the highest amount since 2007, when the average expenditure per household on olive oil was €98.9. According to the latest INE data, this record will be surpassed by the 2023 figures.
Also read: Olive oil prices double
