Latvia Inflation Rate Accelerates to Over 2-Year High

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.

The annual inflation rate in Latvia slowed to 3.8% in November 2025, the lowest in four months, easing from 4.3% in October. The moderation was driven by slower price growth in food (5.2% vs 5.6%), transport (2.2% vs 2.6%), miscellaneous goods and services (0.8% vs 4.5%), recreation and culture (2.0% vs 2.3%), health (3.7% vs 4.0%), alcohol and tobacco (2.1% vs 2.4%) and communication (2.7% vs 3.0%). Prices remained stable for housing (6.2%) and restaurants and hotels (5.4%), while costs accelerated in clothing and footwear (1.7% vs 1.4%). On a monthly basis, consumer prices fell 0.3% in November, reversing a 0.4% increase in October and marking the sharpest decline since August 2024.

The annual inflation rate in Latvia rose to 4.3% in October 2025, from 4% in September, the highest since August 2023. Prices increased at a faster pace for housing (6.2% vs 4.1% in September), miscellaneous goods and services (4.5% vs 1.4%), and health (4% vs 3.7%). Meanwhile, inflation was steady for transport (at 2.6%) and recreation and culture (at 2.3%). On the other hand, cost slowed for food (5.6% vs 6.8%), alcohol and tobacco (2.4% vs 3.9%), clothing and footwear (1.4% vs 1.6%), communication (3% vs 3.3%) and restaurants and hotels (5.4% vs 5.7%). On a monthly basis, consumer prices rose by 0.4% in October, after a 0.2% increase in September.