Latvia Inflation Rate Hits 2-Year High

The annual inflation rate in Latvia eased to 3.4% in June 2026, down from 3.5% in May. Food prices declined at a slightly faster pace (-0.9% vs. -0.8%), while deflation for clothing and footwear deepened (-0.6% vs. -0.1%). Price growth eased for transport (7.1% vs 11.1%), restaurants & hotels (7.9% vs 9.5%) and health (4% vs 4.9%). Meanwhile, inflation accelerated for housing & utilities (7.2% vs 5.8%), recreation & culture (4.8% vs 3.2%), alcoholic beverages & tobacco (0.9% vs 0.4%), furnishings & household equipment (1.4% vs 0.1%), insurance and financial services (5.2% vs 3%) and education (3.5% vs 3.4%). Inflation for information and communications stood at 2.1%. On a monthly basis, consumer prices were unchanged after rising 0.5% in May.

The annual inflation rate in Latvia accelerated to 3.5% in May 2026, the highest in four months, from 2.9% in April. Prices rose faster for housing & utilities (5.8% vs 5.1%), transport (11.1% vs 8.5%), recreation & culture (3.2% vs 1.8%), health (4.9% vs 4.6%), personal care, social protection, various goods and services (4.7% vs 2.9%), restaurants & hotels (9.5% vs 5.6%) and insurance and financial services (3% vs 1.8%). Meanwhile, inflation was steady for communications (at 2.1%), and cost slowed for alcoholic beverages & tobacco (0.4% vs 0.6%), furnishings & household equipment (0.1% vs 1.2%) and education (3.4% vs 4%). At the same time, prices fell for food and non-alcoholic beverages (-0.8% vs -0.3%), and clothing & footwear (-0.1% vs 0.6%). On a monthly basis, consumer prices increased 0.5% in May, after a 0.6% rise in April.

Latvia’s annual inflation rate eased to 2.9% year-on-year in April 2026 from 3.4% in the previous month, largely driven by deflation in food and non-alcoholic beverages (-0.3% vs 1.1% in March). Price growth also slowed across several categories, including alcoholic beverages and tobacco (0.6% vs 0.9%), recreation, sport, and culture (1.8% vs 3.4%), clothing and footwear (0.6% vs 2.1%), personal care, social protection, and miscellaneous goods and services (2.9% vs 6%), furnishings, household equipment, and routine household maintenance (1.2% vs 1.5%), and education (4% vs 4.6%). In contrast, inflationary pressures persisted for housing and utilities (5.1% vs 4.8%), healthcare (4.6% vs 4.1%), transport (8.5% vs 7.3%), information and communication (2.1% vs 1.4%), and restaurants and accommodation services (5.6% vs 4.2%). On a monthly basis, consumer prices slowed to 0.6% in April from 1.9% in the prior month.