The average cost of a supermarket basket increased by 5.56 percent in 2024, reaching €32.87, despite several price reductions in key food items.
Extra virgin olive oil saw a 15 percent drop, bananas dropped by 10 percent, potatoes decreased by 11 percent, and sunflower oil prices fell by 16 percent. However, food sellers increased their prices across various other categories.
Patricia Suárez, president of the consumer association Asufin, criticised the VAT reduction measure, stating, “The VAT reduction has not been effective because there has been no proper monitoring or compliance. Food distributors have taken advantage of the government's measures to raise their prices.”
In response to rising food costs, the government announced that, starting January 1, VAT on basic-need foods would return to 4 percent, while pasta and seed oils would be taxed at 10 percent. However, VAT on olive oil will remain at 4 percent, which had been introduced prior to the inflationary crisis.
