Paella Costs More to Cook in Spain Even After Food Tax Cut

Spaniards paid more to cook their beloved paella in January as the price of rice, oil and seafood continued to climb strongly even after the government slashed taxes on food staples.

Bloomberg’s monthly Paella Index, which crunches data from Spain’s National Statistics Institute, shows that the ingredients for the Mediterranean meal cost 15.6% more than they did a year ago. Rice shot up nearly 20%, while olive oil surged 30.5%.

The higher cost of making paella, which locals usually enjoy on weekends with friends or at family gatherings, highlights a food-price problem that has gripped the euro area’s fourth-biggest ...