Latvia Inflation Rate Hits 2-Year High

The annual inflation rate eased to 2.3% in February 2026 from 2.9% in the previous month, marking its lowest level since November 2024. Costs slowed across key categories, including food and non-alcoholic beverages (2.4% vs 3.9% in January), housing and utilities (5.3% vs 6%), alcoholic beverages and tobacco (0.6% vs 0.8%), and recreation, sports, and culture (1.4% vs 1.5%). Similarly, costs moderated in furnishings, routine household maintenance and equipment (0.9% vs 2.5%), education (5.1% vs 9.8%), and personal care, social protection, and miscellaneous goods and services (3.2% vs 4.8%). Meanwhile, deflation in transport eased (-1.7% vs -2.2%). By contrast, inflation picked up in health (4.1% vs 3%), clothing and footwear (2.9% vs 2.4%), and restaurants and accommodation services (4.4% vs 4.3%). On a monthly basis, consumer prices edged up 0.2% in February, following a flat reading in January.

The annual inflation rate slowed to 2.9% in January 2025 from 3.5% in December, marking the lowest reading since November 2024. The CSB will use a new reference period in calculating the consumer price index, with the average level of 2025 assigned an index value of 100. The CPI in Latvia and the European Union is compiled in accordance with the updated European Classification of Individual Consumption According to Purpose (ECOICOP), version 2. Prices moderated for food and non-alcoholic beverages (3.9% vs 4.2% in December) and housing (6% vs 6.9%), while costs slipped for transport (-2.2% vs 0.6%). Overall inflation was also influenced by slower price growth in recreation, sport and culture (1.5% vs 2.6%) and information and communication (2.5% vs 2.8%). Meanwhile, costs accelerated for alcoholic beverages and tobacco (0.8% vs 0.2%), health (3% vs 2.5%), and clothing and footwear (2.4% vs 2%). On a monthly basis, consumer prices stalled after a 0.1% fall in December 2025.

The annual inflation rate eased to 3.5% in December 2025 from 3.8% in the previous month, marking the lowest level since March. The slowdown was driven by softer price growth in food and non-alcoholic beverages (4.2% vs 5.2% in November), alcohol and tobacco (0.2% vs 2.1%), and health care (2.5% vs 3.7%). Inflation also moderated in transport-related goods and services (0.6% vs 2.2%), restaurant and hotel services (4.2% vs 5.4%), and education (10.0% vs 10.8%). Meanwhile, price pressures picked up in housing and utilities (6.9% vs 6.2%), furnishings and household maintenance (2.3% vs -0.2%), recreation and culture (2.6% vs 2.0%), communication (2.8% vs 2.7%), clothing and footwear (2.0% vs 1.7%), and miscellaneous goods and services (4.0% vs 0.8%). On a monthly basis, consumer prices fell 0.1%, following a 0.3% decline in November.