This year, food price inflation in Latvia remains stable and low. According to the calculations made in the industry overview “Maxima Retail Compass”, two products with the most significant price decrease in the first six months of this year were coffee and sugar. In comparison to the relevant period a year ago, coffee prices decreased by 8% on average, while sugar prices showed deflation of 32.9%.
“A positive trend, reflected in fall of sugar prices, can be observed since the beginning of the year. For the last few months the situation has been stable, and the price no longer falls. One of the key reasons is the record-high volume of reserves in the largest producing countries. Whereas, the significant drop in coffee prices can be explained by the fact that it is a very popular product of daily consumption; and, taking into account the habits of buyers, we have reduced the price of coffee in the long term. Other market participants responded accordingly, and a decrease in the price was observed,” explains Zane Kaktiņa, Director of Business Analytics Department at “Maxima Latvija”.
Furthermore, due to changes in the Law on Value-Added Tax regarding reduced rates on the fruit, vegetables and fruit characteristic in Latvia, average 1.9% inflation of fresh fruit prices was registered during the first six months, while vegetable prices showed 11.3% deflation.
Due to the rise in the excise tax, the most rapid increase in prices was observed in relation to alcoholic beverages. The average inflation of the prices of alcoholic beverages in the second quarter was 4%, with the most rapid increase showed by spirits – 6.2%, but the least by beer – 0.8%.
"Maxima Retail Compass” is a comprehensive overview of the retail industry, in which experts from the retail network "Maxima Latvija" have given their assessment on the current situation in retail and its future trends. This time, special attention in the sector's review was paid to the development of the grain cultivation industry in Latvia and the Baltic States in 2018 and the consumption patterns of grains among the population of Latvia. The survey of the grain cultivation industry was developed in cooperation with the joint stock company "Dobeles Dzirnavnieks" and the agronomists from the Latvia University of Life Sciences and Technologies.
Information to the media:Liene Dupate-Ugule
Head of Communicayions, SIA "Maxima Latvija"
Tel.: 26425420
e-mail:
liene.dupate@maxima.lv www.maxima.lv
