The memorandum on food retail has delivered tangible results – the share of locally produced items in low-price baskets across retail chains has reached an average of 50%, and the introduction of low-price products has helped curb the rise in consumer prices in the country.
According to observations by the Consumer Rights Protection Centre (CRPC), the share of locally produced items in low-price baskets at retail chains – Rimi, Maxima, Lidl, Top and Elvi – ranges from 35% to 59%. Since the baskets were introduced at the end of June this year, the average indicator has not fallen below 43%, although the share of local products differs between retail chains. In two chains, the 19-week average stands at 58% and 56% respectively, while in the remaining three it ranges from 44% to 49%. Overall, the availability of low-price basket products has been assessed positively – in 91% of cases they were available on store shelves. According to information provided by retailers, although product availability is closely monitored, it is not always possible to procure sufficient volumes to meet all demand.
The introduction of low-price baskets in the food sector has also had a positive impact on curbing inflation. Data for October show that the typical monthly increase in food prices was minimal this year – prices for food and non-alcoholic beverages rose by 0.5% over the month, which was the most moderate increase in this category since 2020, when prices in Latvia declined due to the COVID-19 crisis, and, excluding that period, the lowest since 2014. Prices of basic food groups included in the memorandum on price reduction also rose slightly in October, mainly due to seasonal factors in the vegetable segment. Overall, the data indicate that the memorandum on food retail makes a real contribution to limiting food inflationary pressure.
Minister of Economics Viktors Valainis:
“Food price reduction and the organisation of the retail sector had not been addressed for more than ten years. Now this issue is on the agenda, and we are moving forward – step by step, but persistently. The food retail sector is currently under increased scrutiny – both through concrete support initiatives and stricter supervision. We now see a very clear result: half of the low-price basket products in Latvian stores are of local origin. This means that the memorandum between producers and retailers is working, ensuring more affordable prices for consumers while at the same time strengthening local businesses. The goal is to ensure fair competition, transparency and stable, fair prices for people across Latvia.”
When assessing the visibility of low-price basket products in stores, the CRPC observed issues in some retail locations regarding the timely placement of signage. Retailers were informed and encouraged to improve the situation by making signage more visible and easier for consumers to notice.
On 27 May this year, a memorandum on food retail was signed, aiming to increase the assortment and sales volumes of locally produced food products, promote the availability of basic food products for Latvia’s residents, especially low-income households, improve cooperation between retailers and producers, and support economic growth and sustainable competition in the food supply chain. To promote price transparency in food retail and make it easier for consumers to choose and purchase the cheapest products according to their purchasing power, the Ministry of Economics amended the Consumer Rights Protection Law, which was adopted by the Saeima on 19 June this year, and developed Food Price Submission Regulations for price traceability and monitoring, adopted by the Cabinet of Ministers on 12 August.
The developed regulatory framework provides that, starting from 1 December 2025, retailers will submit data on products from 10 low-price basket groups to the Central Statistical Bureau (CSB), updating them once per day, thus ensuring that they are continuously available to all price comparison tools. Developers of price comparison tools indicate that they plan to fully start working with the new data from early January 2026.
It is envisaged that operators of price comparison tools such as Letapartika.lv, CenuDepo.lv and VisiBukleti.lv will have access to information that will not only enable price comparison for consumers, but also open up various personalisation options, including notifications about price changes of selected products, shopping list creation and barcode scanning. Developers of price comparison tools have stated that they will be able to provide information on product availability in specific food stores, the most advantageous products in each basic category, short shelf-life products, and more. Market situation analysis, historical data and trend analysis are also promised.
Continuing work on limiting food price increases and ensuring product availability, the Ministry of Economics has developed a plan to reduce administrative and bureaucratic barriers in the retail sector. The plan includes reviewing regulatory requirements, implementing reforms to advertising regulations in public spaces, reforming street trading regulations, and supporting small retailers. An informative report will be prepared and submitted to the Cabinet of Ministers in the near future.
The government has also supported the implementation of a pilot project included in the 2026 budget package – from 1 July 2026 to 30 June 2027, applying a reduced VAT rate of 12% to supplies of bread, fresh milk, fresh chilled poultry meat and fresh poultry eggs (in shells).