Memorandum on reducing food prices is not really working - Aseradens

RIGA - The memorandum on the reduction of food prices signed back in May is not really working, Finance Minister Arvils Aseradens (New Unity) told Latvian Television this morning.

Asked whether the memorandum on reducing food prices was working, the Minister replied, "It looks like not really".

At the same time, Aseradens added that food price rises are a problem not only in Latvia, but throughout the European Economic Area (EEA).

"Food inflation is a very, very unpleasant problem," said the Finance Minister, pointing out that food price rises are felt by all residents, but that lower-income people are the most affected.

As reported, a memorandum on reducing food prices was signed on May 27 this year. The memorandum foresees the introduction of a low-price food basket, a price comparison tool and the promotion of locally sourced products in grocery stores.

The low-price food basket will consist of at least one product in each of the 10 categories with the lowest price and will be exchanged for other products in the same category with some regularity.

The signatories to the memorandum include around 75-80 percent of market players, including Top!, Elvi Latvija, Aibe, Narvesen, Maxima, Lidl, Rimi and others. At the same time, the Economics Ministry continues to work with those retail chains that have not joined the memorandum.