Rinkevics expects relevant authorities to analyze causes of food price hikes and propose solutions

RIGA - Relevant authorities, including the Bank of Latvia and the Competition Council, must analyze the causes of the sharp food price increases and come up with proposals instead of pinning the responsibility on one another, President Edgars Rinkevics told reporters following a meeting with Prime Minister Evika Silina (New Unity) on Wednesday.

The prime minister said that the government recently examined a draft law that provides for a number of instruments to reduce food price hikes and that the bill has been sent to the Saeima. Silina stressed that a debate should be started in the Saeima Economic, Agricultural, Environmental and Regional Policy Committee so that the draft law proposed by the government could be put before the parliament. Silina said that some of the proposed instruments could help to significantly curb the food price hikes.

At the same time, the prime minister noted that Latvia has the lowest inflation rate among the Baltic states. According to Silina, this was also thanks to the government's decision to put caps on pay rises in the public administration, a targeted economic development policy and work aimed at attracting investment.

As reported, in April 2025, Latvian consumer prices rose by 1.1 percent against March, while the annual inflation rate was up to 3.9 percent in April from 3.3 percent in the same month last year, according to the data released by the Central Statistical Bureau (CSB) on Monday.

At the same time, the 12-month average consumer price level rose by 2.2 percent in April against the previous 12 months.

As LETA was told at the Finance Ministry, two main factors are currently affecting inflation in Latvia: rising food prices, which are pushing up the inflation rate, and the slowdown in global economic growth, which is holding back price increases as demand weakens. The Finance Ministry also forecasts that overall average inflation will be closer to 3% in 2025.

The Finance Ministry also indicated that food prices are affected by rising food commodity prices on global markets and rising labor costs as workers' wages increase. However, the ministry added that these factors do not fully explain the sharp rise in food prices in Latvia, especially in a situation where energy and fuel costs are falling.