The decrease in food prices in Latvia has sparked a discussion between the Ministry of Economics and industry experts. Authorities believe this is the result of agreements reached with retailers and producers, while specialists point to more global reasons.
Against the backdrop of data showing a decrease in food prices in Latvia, a debate has arisen regarding what exactly influenced the situation in stores, writes LETA, citing public media.
Economics Minister Viktor Valainis believes that a memorandum signed about a year ago between food producers, retail chains, and the Ministry of Economics played a role. The document outlined joint steps to enhance the availability of products for consumers and improve market transparency.
However, industry specialists assess the situation differently.
Inguna Gulbe, head of the Agricultural Market Support Center, notes that price reductions are observed not only in Latvia but also in global markets. In her opinion, the global dynamics of raw material and food prices remain the main factor influencing store prices.
She emphasizes that consumers often find products at lower prices than those included in the so-called low-price basket. Therefore, linking the overall price decrease solely to this initiative would be incorrect. According to Gulbe, the cost of products on the shelves is primarily determined by the situation in international markets, rather than by individual local regulatory mechanisms.
At the same time, the expert acknowledges that the memorandum itself has brought certain benefits. One of its main outcomes, she believes, is that the Ministry of Economics managed to bring together producers and retailers, whose relationships have traditionally been complicated. This allowed for the initiation of discussions on joint solutions and improved dialogue within the industry.
Valainis, for his part, considers the memorandum an important signal for the market. According to him, the document demonstrated the government's readiness to participate in finding practical solutions and stimulated market participants to respond to societal demands.
The minister also reminded about discussions surrounding a possible reduction of VAT on certain products, improvements in accounting systems, and other measures that were discussed within the framework of cooperation between the government and business.
What is important for consumers: despite the debate over the reasons, the fact remains unchanged — over the past year, food prices in Latvia have indeed become cheaper on average. According to the latest data from the Central Statistical Bureau, in May, prices for food and non-alcoholic beverages were 0.8% lower than a year earlier.
On Tuesday, the government reviewed the report on the implementation of the memorandum. The Ministry of Economics has already stated that work in this direction will continue, and the initiative itself will be expanded.
Thus, the question of who exactly played a decisive role in the price reduction remains a subject of discussion. However, both authorities and experts agree on one point: for consumers, the most important thing is that affordable prices are maintained in the future.
