Economists warn: the rapid rise in food prices in Latvia reflects a worrying imbalance — the largest profits are earned by retail chains, not industrial or energy companies, which reduces the welfare of the population.
In Latvia, food prices are rising rapidly, and all residents of the country are already feeling it. However, as Malvīne Strazdiņa, an associate professor at the University of Latvia, states in the program "Preses klubs" on TV24, there is a much deeper and more alarming problem behind this: grocery chains are becoming the most profitable companies in the country, which is completely atypical for developed economies.
According to Lursoft, the largest profits in Latvia are generated by retail giants. Only after them do large national enterprises like Latvenergo and airBaltic follow. Strazdiņa notes that this situation sharply contrasts with neighboring Estonia, Lithuania, and Poland, where the leaders in profits are usually industrial, energy, or technology companies, not retail chains.
The economist emphasizes that if grocery stores become the main center of profit accumulation, it means that the population is forced to spend an disproportionately large part of their income on food. This is a direct indicator of declining welfare and imbalance in the economy.
The rapid rise in food prices that residents have observed in recent years is seen as a logical consequence of this anomalous profit structure. And although salaries in the country are formally rising, their increase is not keeping pace with the surge in prices for food and essential goods: "Salaries are also rising, and the average monthly salary is increasing. In the second quarter of 2025, they also grew, but apparently, the expenses on food and consumer goods are not keeping up with the growth."
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