Mārtiņš Kazāks, the President of the Bank of Latvia, stated that while the situation regarding the rise in energy resource prices may stabilize in the coming months, the government needs to implement strategies to mitigate the impact on inflation. Kazāks emphasized the importance of preventing the rise in energy prices from spilling over into other consumer segments. He suggested potential measures like reducing excise taxes and incorporating biofuels as part of the solution. Nonetheless, he cautioned that it may not be possible to completely isolate the price rise but that its effects could be diminished.

Kazāks underscored the importance of evaluating the situation continuously and developing action plans. When discussing potential support measures, he highlighted that any government aid should be temporary and targeted, with a prior assessment of its potential impact, especially regarding fuel costs for spring sowing. This approach aligns with the need to ensure that inflation does not escalate further due to rising energy prices.

In the context of the European economy, Kazāks noted that both the European and Latvian economies are currently more resilient than in 2022, which began with the Russian invasion of Ukraine. However, he also acknowledged that there is a high level of uncertainty concerning the future, warranting ongoing scrutiny and responsive measures to safeguard economic stability in Latvia amidst these challenges.