Food prices will not go down this year, says expert

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A drop in food prices by the end of the year is highly unlikely, Ingūna Gulbe,  head of the Agricultural Market Promotion Center, told Latvian Television morning broadcast on October 11.

Globally, food prices peaked at the beginning and middle of the year, and compared with that, prices have fallen. However, consumers cannot anticipate the decline in prices at present due to the high costs of energy resources.

"So by the end of the year, there can certainly be no cuts or stops. That might happen in spring, and the reason for that could be residents' purchasing power and empty wallets after the winter heating season, when producers and traders may have to sell more products below cost," Gulbe said.

For the less-wealthy part of the population, the rise in food prices is critical: “Those people who are more wealthy have noticed [rising food prices] but sigh and pay. But there is a very large proportion of the population who have nothing more to pay. Latvia's problem is that our citizens pay about 20% of their income for food."

Data from September this year show prices in the food and non-alcoholic beverages group increased by 27.5% during the year.

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