Food price inflation was one of the main contributors to the strong rise in euro area headline inflation in 2022 and, once food inflation started to decline, also to the disinflation thereafter. Food inflation increased to a historical peak of around 15% in March 2023, surpassed only by the earlier surge in energy inflation (Chart A). Since then, food inflation has declined, falling to 5.7% in January 2024, but is still above its pre-pandemic long-term average of 2.1%.[ 1 ] Food accounts for around 20% of expenditure in the overall Harmonised Index of Consumer Prices (HICP) basket and largely represents consumption ... (full story)