It has added to concerns over the intense pressure on households, with food prices rising at 45-year-highs at the same time as mortgage rates and energy bills have ballooned.
The maker of brands including Bertolli and Carbonell said conditions were improving after the industry had been through “one of the most difficult moments” in its history.
Miguel Ángel Guzmán, chief sales officer at Deoleo, told CNBC: “We are still going through a phase of tension in olive oil prices, especially in the higher quality oils, such as extra virgin.
“However, the outlook is positive for the coming months, as the market is expected to begin to stabilise and normality is expected to be gradually restored as the new harvest progresses and supply increases.”
It follows years of crisis for the olive oil industry. Southern Europe has been struck by droughts and extreme weather in recent years, upending olive harvests and spurring a historical spike in prices.
The International Olive Oil Council estimates that most countries producing olive oil, such as Spain, Greece, Portugal and Tunisia, will see a better harvest this year.
Reports from farmers in southern Europe, who were most affected by scorching droughts, suggest Spain’s output will rise to 1.4m tonnes from 850,000 last year.
Mr Guzmán said wholesale prices were expected to decline between November and January and proceed to fall well into 2025, provided weather conditions stay favourable.
This should prompt a fall to €5 (£4.17) per litre from highs of €9-€10(£7.50-£8.34) still common in Spanish supermarkets, according to Deoleo.
Spain produces two fifths of the world’s olive oil, making it an international benchmark for prices. Overall, the Mediterranean accounts for 80pc of global supply.
