Italy’s pizza prices have risen 2.5 times faster than inflation. Why?

A margherita pizza costs 20% more than a year ago but inflation in Italy is currently at 8.3%. Part of the reason for this gap lies 1,000km west of Naples. Spain produces 40% of the world’s olive oil but an ongoing drought has devastated Spain’s olive groves. Experts say production is likely to fall by 50% this year. This will shrink the world’s olive oil supply by 10%. The price of olive oil has already jumped by 27% in Italy as a result. But it’s not just olive oil behind the rising cost of margheritas. Pizza-making uses some other staple commodities, too – flour, mozzarella, tomatoes and energy to heat the oven. Each of these has been hit by inflation-busting price rises according to Bloomberg’s Pizza Margherita Index. #italy #pizza #inflation #spain #oliveoil #food #costofliving