Basic food products see 30% price hike in two years

The prices of several basic foods have increased by more than 30% in just two years, making it harder for thousands of households to stay on budget and raising alarms as the upward trend is expected to continue. 

Olive oil, a staple in many Catalan households, has seen a significant increase of 56% from 2021 to May 2023.  Similarly, other essential items such as milk have experienced an increase of 40%, in line with the rising cost of rice (38%), tomatoes (31%), eggs (30%) and clementines(28%). However, the most striking increase is in processed pork meat, with an alarming 92% rise. 

Data from the Catalan Ministry of Agriculture analyzed by the Catalan News Agency (ACN) shows the average price paid by consumers in supermarkets, which in some cases is a larger increase in the last two years than in the last decade. 

One of the most noteworthy cases is milk. In 2015, its average cost was €0.74 per kilogram [one kilogram of milk is almost equal to one liter]. But in the first five months of this year, the cost had risen to €1.01 per kilogram, breaking the euro threshold for the first time.   

Similarly, olive oil has seen a dramatic escalation in price in recent years. In 2020, the price per kilogram, which in this case is slightly lower than that of a liter, stood at €3.02. However, in the first five months of 2023, the average price had nearly doubled to €5.30 per kilogram. 

Consumers pay three to five times more than farmers charge 

The price increases contrast with what producers receive, as consumers pay between three and five times more than the farmer receives.   

One of the most striking examples is a kilogram of mandarins, for which the farmer receives only €0.48, while consumers pay €2.28 at the store.   

For a free-range chicken, the farmer receives €1.36, while the consumer pays €5.73.  

It should be noted, however, that not all agricultural products suffer from such extreme differences.  

Olive oil, for example, shows a comparatively smaller gap, with producers receiving between €4 and €5.50, while consumers are faced with a retail price of €5.30.   

The widening gap between farmer and supermarket prices raises questions about the economic dynamics within the agricultural supply chain and underscores the need for a more sustainable and equitable pricing structure.  

How Catalans cope with inflation 

Rising food prices is being seen across Europe, and it especially affects low income households who are already struggling with other bills.  

The sharp increase in prices and general inflation hitting Catalonia means some people are changing their shopping habits, cutting unnecessary spending and sometimes struggling to make ends meet.

Barcelona resident Rebeca, spoke to Catalan News about the impact inflation has had on her life.  

"All of a sudden, one day, I made my usual shopping order and when they told me the total amount, I was very surprised and I said, "Oh my God, what happened? What did I buy?" But in fact, I bought the same things I always buy," she explained.  

Bruno, who also lives in Barcelona, said his family's shopping experience has changed since inflation hit, especially when buying certain products like olive oil.   

"We use olive oil as a measure of price changes, and we've seen how the price has gone up quite a bit these days," he told Catalan News.   

Retiree Dolores said it is hard for one-income households to cope with inflation. She noted that while she has not cut back on food, she has cut back on hairdressing costs.   

"I haven't cut back on anything. But I watch prices more now than before, even though I'm alone, I'm a widow. But it has to be done. I also used to go to the hairdresser three times a month, now I only go once," she said. 

Stable inflation 

Inflation in Catalonia, as measured by the Consumer Price Index (CPI), stood at 3.4% in October, the same rate as in September, according to Spain's National Statistics Institute (INE).  

Prices in Catalonia were 3.4% higher in October than in the same month last year, when the inflation rate was 6.8%, double the current rate.  

Food prices were 8.3% more expensive than last October, but rising more slowly compared to September, when the annual increase was at 9.6%.   

To learn more about the challenges posed by high food prices and the ongoing struggle of farmers to make ends meet, tune in to the latest episode of our podcast Filling the Sink.