Olive oil remains in Greece’s prolonged accuracywith the price of recording historically high in the last two years. Price launch has already had significant consequences for consumption by pushing Greek households seeing a basic product of their daily lives turning into a luxury.

According to the latest details of Eurostatthe price of olive oil in Greece has increased cumulatively by 137.2% from January 2021 to May 2024 – with the average increase in EU to set up at 121.5%. Olive oil is now emerging in one of the most important trophyrialism factors, as recent estimates that its price increase added about 0.5 percentage points to food inflation in the first half of 2024.

Why were prices launched

The upward course is attributed to a combination of factors, with dominant climate change. Extreme weather and prolonged periods drummy have severely hit crops in basic olive -producing countries such as Greecethe Spain and the Italy. Production losses have served as a catalyst for price ejecting internationally.

At the same time, geopolitical tensions and problems in global supply chains, including attacks on Red Sea and the instability in Middle East, They have boosted transport costs and overall volatility in the market.

The impact on Greek households and hope on the horizon

The effect of accuracy is already visible in the daily lives of citizens. Market research shows that eating olive oil has decreased by up to 40% compared to previous years, with more and more consumers turning to cheaper substitutes, such as sunflower oil or other seed oils.

This decrease is more pronounced in the lower income strata, for which olive oil has always been a basic nutrition product. Changes in purchasing habits are limited not only to quantities, but also to the quality of the oil preferred by consumers, with a clear shift from the extremely virgin to cheaper categories.

In spite of the negative climatethe prospects for buying olive oil show signs of improvement. The first indications from the productive period of 2024 are encouraging, with production in Greece estimated to increase by 42.9% compared to the previous year. A similar increase is foreseen for Spain, which may lead to gradual prices, both in wholesale and, with a delay, in the retail market.

Experts estimate that if the harvest is running smoothly, prices may decline up to 30-50% of today’s levels, with the impact felt on the market from autumn onwards.

However, analysts warn that the market remains vulnerable, mainly due to extreme weather events that are not excluded. At the same time, the delay in retailing, as well as the lack of low prices, mean that Greek households will still have to wait for substantial relief.

Economists and consumer organizations are calling for strengthening market controls, as well as support measures for vulnerable households. At the same time, the need to review agricultural policy is emphasized in order to enhance the viability of domestic olive oil production and to reduce dependence on external factors.