Olive oil prices have surged about 27% according to a report by Bloomberg. This surge in the cost of olive oil is prolonging the cost-of-living shock on Italian families already reeling from lasting increases in the cooking staples that make up Bloomberg’s Pizza Margherita index.
Not only this, but the prices of other ingredents like Flour, Mozzarella and Tomatoes have also gone up. With this, the overall cost of making a pizza in Italian homes have now been at least 20% higher than a year earlier for eight months in a row.
But why olive oil prices are increasing?
There are several reasons why the price of olive oil is about to go up. The enduring surge in the price of olive oil reflects a devastating drought afflicting Spain, the world’s biggest producer, at a time of dry conditions in the rest of southern Europe.
The another reason for olive oil price hike was initially triggered by a scarcity of sunflower oil last year after Russia invaded Ukraine.