Hike of food prices to continue - federation

RIGA - Hike of food prices will continue, the Latvian Federation of Food Companies (LPUF) said.

The federation notes that the situation in the food sector is alarming because there is a rise in all positions of costs, thus, price hike of food products is inevitable. The prices will rise gradually, and the rise will be different in different product groups.

Even though food supplies prices has risen over the years, the current situation suggests a steep rise. 

LPUF council chairwoman Inara Sure said that producers have made investments in improving energy efficienty in order to reduce the impact of electricity price changes, but at present there is a rise in all positions of costs.

The food price hike is also related to reduction of harvest due to the weather conditions this past summer, the impact of the global Covid-19 pandemic. Prices of packaging and energy resources are also growing.