Inflation bites into Italy’s pizza

April 20, 2023 - The cost of a homemade pizza has soared well over Italy’s annual inflation rate as food prices add to the cost-of-living shock for families already reeling from surges in energy prices.

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Italy’s National Institute of Statistics said Monday (April 17) that the nation’s annual inflation rate dropped to 7.6% in March, down from 9.1% in February. Year-on-year, the inflation rate was just 1.1% above the 6.5% recorded in March 2022.

However, the overall cost of making a pizza at home has now been at least 20% higher year-on-year since last August -- eight months in a row -- according to Bloomberg’s Pizza Margherita index.

A 27% jump in the price of olive oil is prolonging the pain for Italian families, partly driven after Spain -- the world’s top exporter of olive oil – is plagued by drought. Production is down by about 50%, according to the International Olive Council.

However, the price of olive oil is hitting British consumers even harder than Italians. On Wednesday, the Office for National Statistics reported that olive oil is now 49.2% pricier than a year ago, while a pizza is 17.2% more expensive on average.

In the U.S., tomato paste is up 36.3% from 2022, according to data from commodities market intelligence firm Mintec.

In Australia, restaurant owners say the cost of pizza staples is soaring.

“We’ve had 50%, 100% increases on some items [for] the last six to nine months,” said Melbourne restaurateur Johnny Di Francesco, who imports his ingredients from Italy.