Food prices in Latvia largely follow world market trends
Ingūna Gulbe of the Agricultural Resources and Economics Institute says food prices in Latvia are driven mainly by the global market. Cooking oils are cheaper in Estonia, while dairy is cheaper in Lithuania.
Food price levels in Latvian shops match the situation both in the country and on the world market. This was stated in an interview with the Jauns.lv news portal by Ingūna Gulbe, head of the Agricultural Market Promotion Unit at the Agricultural Resources and Economics Institute. In her view, food prices in the Baltic states depend largely on global trends, although the prices of some products differ between the countries.
According to the expert, oils are cheaper in Estonia, while Lithuania stands out for lower dairy prices.
Influence of the world market
Gulbe stressed that prices on Latvian store shelves are affected most by the world market. If prices rise globally, they rise in Latvia too; if they fall, they fall here as well. However, she said, prices in Latvia climb faster and drop more slowly. The direction always matches that seen worldwide or in the region.
Each product has its own price driver
The price of each product is shaped by different factors. Grain prices are set on world exchanges, and Latvia cannot influence them. Fruit and vegetable prices are largely determined by Poland: its harvests and sales outlets, including whether the German market is open to it or faces problems. This affects how much produce reaches Latvia.
The price of fresh Latvian strawberries, meanwhile, is set by the domestic market and the size of the harvest.
