Food costs are expected to stay fairly consistent for the near future, as reported by the Latvian Food Industry Association.

In July 2025, consumer prices in Latvia saw a modest increase, with the cost of goods rising by 0.1 percent compared to June, and a more significant increase of 2.9 percent compared to the same period last year. The current inflation rate stands at 3.8 percent, remaining unchanged from June.

The rise in consumer prices is a global trend, and Latvia is no exception. The increase is attributed to various factors, including raw material and energy costs, labor wage increases, seasonal fluctuations, logistics costs, and world market prices. However, a positive development in this context is the ongoing implementation of the Food Price Memorandum by the participants.

The Food Price Memorandum, a cooperative initiative between the government, producers, and traders, aims to ensure more affordable food for consumers. Inara Sure, Chairwoman of the Latvian Federation of Food Companies (LPUF), has stated that the Memorandum's goal is to promote cooperation and transparency in the food industry.

The LPUF views the Food Price Memorandum as a positive development overall. Inara Sure is awaiting an assessment of whether the range of locally produced food products on retailers' shelves has increased as a result of the Memorandum. Preliminary results show a decrease in prices in the low-price segment, with supermarkets offering a basket of basic consumer goods at lower prices.

Despite the positive developments, the stability of food prices is contingent upon the absence of new shocks in the energy, raw materials, or logistics markets. If weather and international trade conditions deteriorate in the autumn, some price increases may occur, but a large and sharp increase is not currently predicted.

The cost of raw materials could have a significant impact on food prices in the autumn following the harvest. The LPUF emphasises the importance of monitoring these costs to maintain the stability of food prices.

In conclusion, while consumer prices have risen slightly, the Food Price Memorandum offers a glimmer of hope for more affordable food in the future. The Memorandum is under public scrutiny, and its impact on the range of locally produced food products is still being assessed. However, the initial signs are positive, with a decrease in prices in the low-price segment. The LPUF overall welcomes the Food Price Memorandum and remains optimistic about its potential to benefit consumers in the long run.

Food costs are expected to stay fairly consistent for the near future, as reported by the Latvian Food Industry Association.