“Why is Food More Expensive in Latvia than Estonia?”

Latvians pay much more for food than Estonians, although they receive less. If the average salary of an employee in Estonia is 1416 euros, in Latvia it is about 300 euros less, researched and written by Õhtuleht.ee. Let’s take a closer look at the conclusions of this medium!

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Entering the grocery store “Rimi”, which is located a few hundred meters from the Latvian National Opera, on the border of Old Riga, takes your breath away. If a few years ago people were constantly talking about shopping in Latvia, now it seems that most prices are higher there.

Tallinn Old Town also has a ‘Rimi’ (what Õhtuleht will compare prices with). Thus, the “tourist factor” will not be taken into account. More or less everything is more expensive in Latvia. Of course, the easiest way is to compare the prices of well-known international brands.

These products most likely arrive in Estonia and Latvia from the same factory. However, 100 grams of “Haribo” gummy bears cost 1.29 euros in Estonian Rimi, and 1.75 euros in Latvian. A half-liter bottle of Coca-Cola had a discount in both countries, in Latvia – 0.99 euros, in Estonia – 0.75 euros. In both countries, an additional 10 cents per container is applied to the price.

The production of the Rimi brand is also identical. A pack of 10 “Rimi Basic” oams can be purchased in Latvia for 1.99 euros, in Estonia – for only 1.69 euros. Ready-made sandwiches are also 20 cents cheaper in Estonia.

A slightly more changing picture opens up for fruits and vegetables.

In Estonia, for example, potatoes are cheaper – 0.39 euros per kilogram, in Latvia – by 20 cents more, the price of tomatoes, as well as lemons and tangerines is 60 cents more per kilogram. On the other hand, Latvians can be proud that domestic cucumbers are 80 cents cheaper per kilogram, garlic – 40 cents cheaper. Onions in the shops of both countries cost the same – 1.19 euros per kilogram.

The price difference in the mentioned category can probably be justified by the argument that different fruits and vegetables from different countries are sold, and it is only logical that the prices differ. For example, the cheapest tomato was delivered to Estonians from Turkey, to Latvians – from Spain. However, bananas in both Estonia and Latvia were delivered from

Ecuador, they even have identical labels, but the same kilogram of bananas costs 1.79 euros in Riga, and 1.29 euros 300 kilometers to the north, in Tallinn.

It should be emphasized that alcohol is cheaper in Latvia. For example, a bottle of “Beefeater” gin can be bought in Latvia for 2 euros cheaper than in Estonia, and beer is also 10 cents cheaper.

Why is food so expensive in Latvia?

The reason for the high prices is not far to look for. Competition in the market of retail chains in Latvia is significantly lower than in Estonia. Two big players – “Maxima” and “Rimi” – together have almost half of the market. No “Selver” or its analogue. In 2021, “Lidl” stores were opened, but there are only 19 of them in the whole country – the German chain of low-price stores does not pose a serious threat to “Rimi” and “Maxima”.

However, let’s end on a positive note: a night in a SPA hotel in Old Riga costs around 60 euros. In Tallinn, you would have to pay several tens of euros more for something similar. Real estate prices in Tallinn are also about 40-50 percent higher than in Riga. Maybe that’s why Latvians can still go to shops and restaurants.

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