Latvia Inflation Rate Picks up to 4-Month High

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.

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.