The new “oil” pushes the general price index to rise

Olive oil is developing into a new “oil” for Greek families, after its contribution to the general rise in prices exceeded any previous contribution, while Greece struggles against inflation, especially in food prices.

The price of olive oil, with its annual rise of 67.2% in March 2024, according to ELSTAT data, pushed the food price index, which rose for the same month to 5.3%, to a higher rate of 2.5%. This means that just under half of food price increases are linked to higher oil prices, which consumers pay in “gold” in supermarkets.

Accordingly, the contribution of the price of olive oil to the overall price index is disproportionately large. In March 2024, the annual increase in oil prices by 67.2% led to an increase in the general index by 0.53 points.

However, the general price index levels being affected by olive oil is not a new development, although not to this extent.

Over the past three years, in general, the price of olive oil has been rising in our country, even at rates higher than inflation, which has gained particular importance in the “reddening” of the indicators.

Specifically, if the price of olive oil increased annually in March 2024 by 67.2% compared to a general increase of 3.2%, then the price of olive oil a year ago (March 2023) increased by 17.4% compared to a general increase of 4.6%. In March 2022, the price of olive oil increased by 22.7%, compared to a general increase in prices of 8.9%. The month of March 2021 was before olive oil prices began to rise, as the price decreased by 2.9%.

This means that in the last three years olive oil has had an increasing specific weight in pushing the general price index higher, because even this year where there is a general tendency to reduce the escalation of inflation, it is reaching historically high and unimaginable levels, and the first headache of feeding Greek consumers is now taking place. .