Expert: Food prices could fall in Q2 of 2023 in Latvia

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Prices for food products could fall in the second quarter of next year, said Ingūna Gulbe, head of the Agricultural Market Promotion Center at the Institute of Agroresources and Economics, in an interview with Latvian Television broadcast “Morning Panorama” on December 28.

In some products, price increases have stopped, such as sunflower oil, which was previously concerning in regard to availability because the raw materials come mostly from Ukraine.

“There is still a continuing rise in food prices. But in December, as we look at what is happening at the supermarkets in Tallinn, Vilnius, Rīga, some products show a decrease in prices. For some products, the increase could have stopped,” Gulbe said.

She pointed out that in all three Baltic States the price level and trends are the same: decreasing price of vegetables, increasing - for most dairy products and bread.

According to Gulbe, price declines could be expected in the second quarter of next year. The expert said companies have had time to think about how to proceed differently. There is also pressure from shops that price increases should be slowed down, as the purchasing power of the population is not sufficient. As producers also have State aid in Latvia, some costs may be excluded from the price.

Gulbe stressed that Latvia is a reflection of the global food market. And that shows that prices could fall further in the future. On the global market, the price of grain, oil, and sugar is declining. They are raw materials used in the production of many products, as well as animal feed products. Similarly, energy prices are also going down somewhat. According to Gulbe, both residents and producers have learned to “live with the new order.”

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