Europe data shows food prices rising faster than wages

After substantial increases in 2022, food prices in the EU continued to rise also in 2023 according to Eurostat. 

Prices for eggs, butter, potatoes and olive oil have been consistently increasing, data released by the EU statistical agency shows. 

In September 2023, the price of olive oil was 75% higher than in January 2021. In January 2022, prices were already 11% higher than the same month of the year before, and between September 2022 and September 2023, prices registered a sharp increase.  

Potato prices were also on a staggering rise: since January 2021, prices for potatoes increased by 53% in September 2023, following a peak in June 2023 (+60%).  

As for the prices of eggs, in September 2023, they were 37% higher than in January 2021. Egg prices stabilized in the first 2 quarters of 2023 and showed some decrease in August and September this year. 

Butter prices evolved in a similar manner. Prices for butter peaked in December 2022 (+44% compared with January 2021) and then slowly started to decline. In September, butter was 27% more expensive than in January 2021. 

A comparison of food prices with European wages by the European Confederation of Trade Unions shows that the prices of basic foodstuffs was rising up to seven times faster than wages. 
Nominal wages have increased by 11% in the EU and 10% in the Euro area over the last three years.   
At the same time, the European Central Bank has noted a huge rise in profits in the agricultural sector. In fact, it appears that unit profits have increased faster than unit labour costs since the start of 2022 after the pandemic, namely in the agricultural sector, supported by rising food prices, as well as energy due to higher prices, construction due to higher housing demand, and manufacturing due to restrained supply in the face of high demand. 

“The reality behind today’s figures is millions of people struggling to put food on the table for themselves or their families despite working long hours in tough jobs,” said Esther Lynch, ETUC general secretary. 

“The evidence shows that major corporations are profiting from the increase in prices, with profit increases in agroindustry second only to those in the energy sector. 

“Meanwhile wages are still failing to keep up with the cost of the most basic food stuffs, including for workers in the agriculture sector itself, forcing more and more working people to rely on foodbanks. 

“Leaders need to address the real cause of inflation by imposing a windfall tax on excess profits and ensuring that workers’ right to collective bargaining is respected. Europe needs a pay rise not pay restraint and high interest rates.”