Olive oil adds to inflation concerns

Compounding worries that prices of grains and fuels will help drive inflation higher are indications that olive oil, especially, but also sunflower oil will become far more expensive.

EU olive oil production this year is expected to be 40% lower than last year, and Turkey’s decision to block exports until the November harvest will further depress supply.

The European Commission estimates that olive oil consumption in the bloc’s main producers, Greece, Italy, Portugal and Spain, will struggle to exceed 1 million tons in 2023, from 1.2 million in 2022.

Concerns that Ukrainian sunflower oil exports will be blocked have also affected oil prices.

ELSTAT, Greece’s independent statistics authority, is expected to announce its consumer price inflation Tuesday and the consensus is it will confirm Eurostat figures indicating a significant rise.