How much could food prices rise? 0 8

As is known, the government today approved a 15% reduction in the excise duty on diesel fuel. Minister of Economy Viktor Valainis (Union of Greens and Farmers) acknowledged in an interview with Latvian TV that this is clearly insufficient and that his ministry had proposed a more radical reduction in the excise rate, depending on fuel prices at gas stations. However, the Ministry of Finance insisted on a "fiscally neutral" solution, meaning that the reduction in excise duty should not lead to a decrease in budget revenues. At the same time, the Minister of Economy did not rule out that if fuel prices continue to rise, the government would revisit the issue of further excise reductions.

Commenting on the possible rise in inflation due to the increase in fuel costs, Viktor Valainis noted that under an unfavorable scenario, food prices could rise by 3-5 percent.