Here’s how things are in supermarkets after VAT disappears

He olive oil It has recently become a product that families in Spain are turning away from due to its ever-increasing price. With a litre often costing over ten euros, the government has approved a measure that VAT on olive oil to be reduced to 0%to later become a staple food item, and therefore its normal VAT rate is 4%. Today’s consumer price index (CPI) data shows a fall to 3.4% in June, driven by oil and petrol. This keeps food prices down to 4.2%. How much has it fallen?

The decision was approved in the Council of Ministers on June 25, where it was established that VAT on products such as milk, bread, eggs, fruits, vegetables or legumes will remain at 0%, now with the addition of olive oil. This measure, yes, will remain until September 30after which the tax rate will increase to 2% and remain in effect until the last day of the year. This means a reduction in the price of the shopping basket and, in particular, olive oil, “healthy and the price of which has recently increased

“, the Spanish government itself reports.

How much has olive oil fallen in price according to the consumer price index?

Thus olive oil price According to data released this Friday by the INE, it fell by 2.4% in June compared to May, representing the second monthly decline since January 2023, after a 2.1% fall in the previous month. Compared to last yearThe price of olive oil continues to rise rapidly, increasing by 53.7% compared to June 2023. This year, the increase has slowed to 9.7%.

The monthly decline may continue in the coming months.

Price reduced in Spanish supermarkets

In this sense, the effects of the VAT reduction are also visible in supermarket chains such as Carrefour, Alcampo, El Corte Inglés, Eroski or Mercadona. In all of them, a litre of extra virgin olive oil with a white label was about ten eurosThe figure has started to decline, partly due to rainfall in recent months and a milder climate, the economist said. Gonzalo Bernardos on the programme “Better Late” on La Sexta. However, the professor of economics at the University of Barcelona is cautious, calling for “restraint” from supermarkets, given the possibility of raising prices to increase their profits.

It should be remembered that the measure previously applied to olive oil was Reduction of VAT from 10% to 5%so now, after the measures approved by the Government came into force, the price has been reduced even further. If we take extra virgin olive oil as a basis, this is what the prices in some of the main Spanish supermarkets have remained after the discount has been applied.

These are specific cases, applicable to the white brands of various supermarket chains in Spain, which allowed savings of around 50 cents, but of course they were not the only ones to have their prices reduced. In El Corte Inglés, for example, a litre of soft olive oil 0.4° Carbonell cost 12.99 euros, and with the discount the price fell to 12.37 euros. Yes, where this measure was most noticeable was in the largest quantities. For example, in the case of a five-litre bottle of Aromas del Sur, it was 44.89 euros and fell to 42.75 euros, which allowed savings more than two euros.

It seems like pockets consumers will finally be able to rest in the coming months regarding the purchase of olive oil. But even in this case, we will have to see how production develops, because from September 30 the measures will change and prices, including VAT, will increase, even if only by 2%.