Latvia Inflation Hits Over 1-Year Low

The annual inflation rate rose to 3.4% year-on-year in March 2026 from 2.3% in the previous month, marking the highest level since December 2025. The increase was driven by a rebound in transport costs (7.3% vs -1.7% in February), mainly due to higher fuel prices (18.5%), with diesel jumping 24.1%, gasoline up 7.5%, and LPG rising 4.3%. Inflation also picked up in alcoholic beverages and tobacco (0.9% vs 0.6%), recreation, sports, and culture (3.4% vs 1.4%), and furnishings, household maintenance, and equipment (1.5% vs 0.9%), while healthcare costs were unchanged at 4.1%. At the same time, price growth slowed in several categories, including food and non-alcoholic beverages (1.1% vs 2.4%), clothing and footwear (2.1% vs 2.9%), housing and utilities (4.8% vs 5.3%), information and communication (1.4% vs 2.5%), education (4.6% vs 5.1%), and restaurants and hotels (4.2% vs 4.4%). On a monthly basis, consumer prices accelerated by 1.9% in February from 0.2% in the previous month.

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.