The rise in food prices continues, with some products already reaching 98%, according to the Latvian Traders’ Association (LTA), which regularly compares the prices of consumer goods in stores.
The association calculates average prices in the price tags indicated in the stores of retail companies, without taking into account the share prices set by the producers.
LTA has recorded that in the group of dairy products, compared to December of the previous year, there is an increase in prices for all goods, the largest increase is in kefir, which has risen in price by an average of 37%. The price of milk and cream has risen by 21%. Prices for cheese, butter, cottage cheese, sour cream have increased by 12-14%. Only the price of cottage cheese “Kārums” has remained unchanged – on average 0.38 cents. The price of eggs has increased by an average of 51% and now 10 M eggs can be bought in stores for 2.54 instead of the previous 1.69 euros.
In the same period, the price of sausages and sausages increased by 12-17%, while the price of chicken and broiler increased by 26% to 3.97 euros per kilogram. The smallest increase – 3% – for anchovies.
In the category of bread and cereal products, the average price of white bread in March of this year was 1.01 euros, in December 2021 it was 0.57 euros, an increase of 77%. The price of rye bread has risen much less – by 14%. The average price of oatmeal has risen by 39%, buckwheat now costs 25% more. The price of rice has decreased and now you have to pay 1.79 euros per kilogram, while in December -2.69 euros. Pasta and peas have also become cheaper.
Compared to December 2021, salt is experiencing the largest increase in price – instead of the previous 0.56 euros, it cost 1.11 euros in March. Manna also has a significant increase of 74%. However, sugar has risen in price by only 8%.
Fruit and vegetable prices are the friendliest. In this group, almost all the most popular prices have decreased or remained unchanged. The only increases are in the popular price wars for bananas and tomatoes. Prices have risen only for oils – rapeseed by 24%, sunflower – by 14%.
LTA President Henrik Danusevich points out that the impact of the Russia-Ukraine war on the economy as a whole can be described as stagflation. This means lower economic growth and higher inflation. These are, of course, negative consequences, but some sectors, including food, may recover in the short term. “Sanctions against Russia mean almost complete isolation of traders in goods and capital in many different ways. Due to sanctions, the depreciation of the ruble and a possible recession, Russia is de facto disappearing as a trading partner of European countries. trade in cereals is already under way, and rising energy prices are hitting Europe and it is difficult to see how the current crisis will affect Europe’s energy transformation project, which is likely to slow down and accelerate significantly in the short term. The influx of refugees has no clear economic impact: in the short term, it is due to increased public spending and the concomitant development of certain enterprise groups and rising household incomes, as well as a wider supply of labor in the labor market. was adopted earlier. Growth may have been higher than previously estimated at the beginning of the year, but the average growth forecast has been reduced to 3%. At the same time, inflation will increase, reaching a maximum in a few months, “comments Danusevics.
He goes on to say that higher fuel prices (no reduction in indirect taxes) as well as the possible second-round effects of a new wave of rising energy (gas, electricity) prices are driving up inflation. “We do not know the peak of oil prices (negotiations on lifting the embargo on Iranian oil imports have been accelerated). However, average inflation will rise to 8.4% in 2022, with a peak of 9.5% in May-Russia. The war between Russia and Ukraine will deepen However, this effect will not be a sharp, sharp rise in prices, but will “expand” in the coming months. Ukraine may temporarily have a positive impact on demand, mainly in the commodity industries, such as food, beverages, textiles, tobacco and even the pharmaceutical sector, and Nielsen says the demand for pasta, rice and canned food has risen sharply. Current geopolitical developments are changing consumer behavior, while demand growth is not as strong as at the beginning of the pandemic. the claim is related to concerns caused by the outbreak of war and the possible threat of war to Latvia. Buyers fear that some items may not be on the shelves, and when they see them running out because others are buying them, they go shopping themselves. The rise in food prices is influenced by the rise in grain prices on world markets, and hence in flour prices. In addition, there is a rise in fuel prices, rising energy, foil, paper and other components, which affect the final price of the goods in the store. So we can forget about cheap food this year, “says the president of LTA.
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