Despite concerns of growing inflation due to COVID-19, general grocery, beverage and tobacco inflation in Latvia this May remained moderate and was lower than in 2019. If the total figure for May last year was 4.3%, this year it was 2.2%. Maxima Latvija had a significant impact slowing down inflation nationwide, as the chain’s internal inflation rate was reduced to 1.6%. This was achieved by implementing a range of initiatives such as freezing and significantly reducing the price of products in some categories.
“Currently, when many Latvians have been affected by the pandemic and economic crisis, it is even more important that we support our customers as much as we can. This is why, at the very start of the state of emergency, Maxima prioritised keeping prices unchanged in all of its more than 170 stores, freezing prices, as well as inviting all retailers to act responsibly. Shortly thereafter, we began implementing extensive long-term price reductions of up to 40% on several thousand basic necessities. We are pleased that these initiatives promoted the maintenance of accessible prices throughout the country,” explains Maxima Latvija CEO Viktors Troicins.
Stable food prices have a significant impact on the livelihood of Latvian households, because groceries make up a significant proportion of daily expenditures. In 2018, the purchase of groceries and non-alcoholic beverages made up 18% of household expenses, which is the fourth highest in the European Union. For comparison, for example, Irish households spend 9.1% of their monthly expenses on groceries.
This May, one of the fastest price drops in Maxima stores was on fresh and chilled fish (prices fell by 12.2%). The price of potatoes fell by 30%, while frozen berries and fruit had a 12% price reduction. The dairy products which are so necessary for a daily balanced diet, like cheese and cottage cheese, fell in price by 5.5%; butter fell by 10% compared with the same period last year.
Information for the media:
