Food prices in stores are rising faster than mushrooms after rain. Some categories of products already seem affordable only on holidays — just a few years ago, we did not have this problem, writes LA.LV. And it’s not just about inflation or the war — the reason is different: why is it that what is reasonably priced in other countries turns out to be twice as expensive in Latvia?
"Food prices are influenced by inflation — and vice versa, — we must not forget about gas prices, electricity, and rising wages, but it is important that the final price is formed as fairly as possible. It is clear that in this chain, the farmer, the processor, and the retailer should all make a profit, but at the same time, food must be accessible to the population," said Martins Trons, a board member of the Farmers' Union and an expert on agricultural policy, during the TV24 program 'Person of the Day'.
"We see more and more outrage on social media — people do not understand why food prices continue to rise, - he continued. - Many also compare prices in stores in other countries — why are they cheaper there? And the reason is not always the difference in VAT rates. There is higher competition there — which means that prices for consumers are friendlier."
He also named the main problem: "The main problem in Latvia is that we have three dominant retail chains that do not compete sufficiently with each other, and this leads to an abuse of the market situation: markups are higher than they should be!"
