Economist: Competition in the Food Market in Latvia is Increasing

In Latvia, there is competition in the food market, and it is intensifying, said Peteris Strautins, an economist at Luminor Bank, during a media event on Wednesday as part of the Competition Law Week. He noted that at least until last year, food prices in Latvia were slightly higher than the average in the European Union (EU), adding that the price comparison can be influenced by the pricing policies implemented by retailers. However, this year, food prices in Latvia are decreasing.

The latest data shows that in September, Latvia recorded the second-largest drop in food prices in the EU after Sweden. Both countries have made changes to the value-added tax (VAT) rates, which could be one of the reasons for these price changes, explained Strautins.

He added that the data could be influenced by changes in retailers' strategies, such as a shift from a heavily promotion-based sales model to maintaining lower prices on a daily basis. Thus, statistically measured prices may differ from actual transaction prices. He pointed out that competition prevails in the Latvian food market, and it is intensifying.