Olive oil prices in Spain are FINALLY set to drop this summer after reaching record highs – this is why

FOR the past 12 months, the sight of soaring olive oil prices on supermarket shelves has become a disheartening reality for shoppers in Spain. 

The staple of the Mediterranean diet has been pushed out of reach for many consumers due to its relentlessly climbing prices that have surged above €10 a litre.

However, the recent rains that have been lavished on Andalucia have brought benefits beyond just being able to fill up swimming pools.

Like manna from heaven, they have also eased the tough conditions that have been limiting the region’s olive oil production.

READ MORE: Olive oil crisis laid bare: These are the devastating factors behind a shock 50% fall in production of Spain’s ‘liquid gold’

The drought conditions, coupled with strong demand both domestically and internationally, have exerted upward pressure on the market. 

However, experts are detecting signs that could signal a much-needed let up in the relentless rise.

Olive-growing regions in Spain have seen significant rainfall this year, which is expected to translate into higher olive production, potentially easing the lack of supply.

The boost in production might enhance quantity but it does not necessarily mean there will be a concomitant enhancement in the quality of the final product, however.

The sharp increase in prices has led to retailers stocking up on olive oil in anticipation of making a killing from further price hikes. 

This stockpiling could potentially backfire if the market begins to correct itself.

READ MORE: WATCH: Supermarket in southern Spain places PHOTOS of olive oil bottles on its shelves amid surging prices and fears of robberies

Additionally, the high prices have dampened domestic demand, further complicating the issue.

Industry experts suggest that the summer months could mark a turning point when prices will begin to tumble. 

While a significant price drop may not be immediate, a period of stabilisation is expected before a potential decline. 

This potential easing of prices will hinge on the success of the upcoming harvest.

However there is another factor that might put a dampner on the positive developments.

The temporary reduction in VAT on food products, implemented to help consumers with the cost of living crisis, is scheduled to end on June 30. 

This may end up potentially offsetting the impact of any price decreases on consumers’ wallets.