The price of food products does not only depend on the purchasing power of the population, but it can also be influenced by the activity of the buyers themselves, Ingūna Gulbe, head of the Agricultural Market Promotion Center, revealed in the TV24 program “Dienas personība”.
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If the product is too expensive for buyers and they do not buy it, the shopkeeper lowers the price because he is not interested in having an expensive product on the shelf that no one buys. “But for many products, we ourselves cause rapid price increases – by reading somewhere, imagining or assuming that the product will soon be unavailable or will become more expensive. The buying frenzy begins and then the prices skyrocket!” says the expert.
She also says that price changes may be related to the contracts concluded between the trader and the supplier. “Contracts are for several months, they are not for every party. They are half-year, year-long contracts. And if one contract ends at a certain price, the next one is switched and the price has changed,” explains Gulbe.