Food Inflation Eases to 3.6% in 2024, Marking an Eight-Point Decline from 2023

For many families, especially those in vulnerable situations, shopping in supermarkets has become increasingly challenging. The National Institute of Statistics (INE) has confirmed that the average food inflation rate moderated to 3.6% in 2024. This figure represents a significant decrease of eight percentage points compared to 2023, when the average inflation for food and non-alcoholic beverages reached 11.7% according to the Consumer Price Index (CPI).

When comparing December 2024 to December 2023, the year closed with a food inflation rate of 1.8%. This indicates that the cost of filling a grocery cart was 1.8% higher in December 2024 than in the same month a year earlier.

The Ministry of Economy highlighted in its official assessment that this noticeable deceleration in food inflation in 2024 ended 5.5 points lower than the December 2023 figure.

One key factor in this moderation has been the significant drop in olive oil prices, which decreased by 12.3% in December 2024 compared to the same month in 2023. This marks the second consecutive month of declining prices for this essential product.

Olive oil had previously seen prices soar during the inflation crisis, accumulating a staggering 132% increase since 2020, effectively tripling its price over that period. However, since April 2024, it has experienced a price reduction of nearly 20%.

Overall, the cumulative rise in the prices of food and non-alcoholic beverages since late 2020 has been recorded at 32.6%. This inflation has been particularly burdensome for the most vulnerable families, following the earlier spikes in energy prices observed in 2021 and 2022. The increases in fuel, electricity, gas, and food prices have severely impacted low-income households, as they allocate a larger proportion of their total income towards essential expenses such as grocery bills and utility payments.

Recent data from the European Central Bank highlights the stark disparities in spending between affluent and less wealthy families. For wealthier households, discretionary spending on leisure, luxury items, and extra services accounts for almost as much of their overall consumption as essential goods and services. In contrast, lower-income families have limited flexibility in reducing expenditures on basic necessities. For instance, cutting back on heating can lead to discomfort, and opting for lower-quality food or reduced variety poses risks to health, with the extreme possibility of food insecurity.

Measures implemented by the government to mitigate the impact of rising food prices primarily included reductions in the value-added tax (VAT) on essential products. However, these reductions concluded at the end of 2024, and the tax rates returned to their pre-inflation crisis levels in 2025.

Looking at the overall inflation landscape, there is also some relief for households. The average CPI for 2024 was recorded at 2.8%, a decline from the 3.6% average of 2023.

This reduction underscores the effectiveness of the economic policies enacted, which have enabled a balance between robust growth in major Eurozone economies and a persistent decline in inflation, according to officials from the Ministry of Economy.

In the interannual comparison, the general inflation rate stood at 2.8% in December. Meanwhile, the underlying inflation rate, which excludes the more volatile food and energy prices, fell to 2.6% in the same month.