The First Signs of Decreasing Food Prices Have Emerged 0 18

The Governor of the Bank of Latvia, Mārtiņš Kazāks, noted in an interview with TV-24 that inflation in recent months has been driven up by food prices. How to combat inflation? Yes, M. Kazāks explained, the central bank can slow down inflation by raising interest rates, but in this case, unemployment will rise and the entire economy will slow down.

Therefore, it is more correct what the Ministry of Economics is currently trying to do - to create a more transparent pricing system so that consumers can find products at a lower price. Of course, stronger competition is also needed.

"We are already seeing the first signs of decreasing prices. This is still happening very slowly. Overall, it can be predicted that inflation will not exceed 3%," forecasts the President of the Bank of Latvia.