In December, the price category ‘oils and fats’ rose by more than 6% and in 2022 oil cost 38% more than in 2021
Everything has gone up in the super’. ‘With 50 euros you have less and less money to make the purchase’. These are utterances that every consumer in line at any establishment can hear before paying. This is not without reason, as food inflation in 2022 was well above 15% compared to the previous year.
However, there are many nuances that consumers’ pockets themselves will have noticed in recent weeks: INE (National Institute of Statistics) data shows that only among what has risen are bread, milk, dairy derivatives (such as yogurt) and olive oil alone accounts for 1.5 points of total CPI.
One of the problems for citizens lies precisely in olive oil, since it is one of the most used products in cooking. In December alone, the ‘oils and fats’ price category rose more than 6% in just 30 days compared to November’s data. And throughout 2022, the oil cost 38% more than in 2021. That is why it is less and less strange to see a liter of olive oil on the shelves of shops for more than six euros per bottle, while a year ago it still cost three euros and even less.
To offset these skyrocketing costs, the reality is that olive oil is suffering from the effects of a drought like the one that hit all the most productive areas last year, led by Andalusia. And now comes the consequences of that weather, with much higher prices. In addition, there is a growing demand for this product after the import problems of sunflower oil that have existed since the beginning of the war in Ukraine, one of the granaries and suppliers of this vegetable for the rest of Europe in general and Spain in particular .
But it is not the only product affected by the drought. Also the pork ham. The lack of rain has meant that much of the pastures of Extremadura, Andalusia and Meseta are running out of acorns, this particular fruit that pigs eat to obtain the Iberian ham.
Given the lack of raw materials, not so many heads can go out to graze in these months to improve the offspring and thus have more product available for the coming months. Now that the Christmas campaign is over – one of the periods of the year with the highest demand for ham – reality is setting in in a sector that is also seeing costs rise.
In addition to the price increase of the usual variables such as energy costs or transport costs, the lack of quality acorns to feed the pigs has now been added. The other alternative, using feed, is also not much cheaper. All compounds have increased their prices, as has happened with agricultural fertilizers, leaving ham only for gourmets.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
