Latvia Producer Inflation at 4-Month Low

Producer prices in Latvia rose by 1.2% year-on-year in January 2026 from a downwardly revised 0.7% growth in the previous month. Output increased in mining and quarrying (17.4% vs 17% in December 2025). In addition, activity recovered for electricity, gas, steam, and air-conditioning supply (1% vs -3.3%). Meanwhile, output growth slowed in water supply, sewerage, waste management, and remediation activities (5.2% vs 5.4%) and manufacturing (0.5% vs 0.9%), with notable decreases in food products (-0.7% vs 0.3%), beverages (3.2% vs 6.1%), paper and paper products (0.3% vs 2.6%), and chemical and chemical products (1.1% vs 1.8%). On a monthly basis, producer prices increased by 0.6% in January, rebounding from an upwardly revised 1.1% decline in the preceding period.

Annual producer inflation in Latvia slowed to 1% in December 2025, its lowest level in four months, down from 2.1% in November. The slowdown reflected a sharp drop in costs for electricity, gas, steam, and air-conditioning supply (-1.9% vs 3.9% in November) and smaller increases in manufacturing (0.9% vs 1.2%), notably in the manufacture of wood and cork products (1.7% vs 2%) and non-metallic products (3.8% vs 4.3%). Inflation in mining and quarrying eased slightly to 17% from 17.3%, while costs accelerated in waste collection, treatment, disposal, and materials recycling (3.9% vs 3.5%). On a monthly basis, producer prices fell 0.8%, reversing a 0.1% increase in November.

The annual producer inflation in Latvia stood at 2.1% in November 2025, unchanged from an upwardly revised figure in the previous month. Prices edged up for manufacturing (1.2% vs 1.4% in October), particularly in the manufacture of beverages, manufacture of other non-metallic mineral products, and manufacture of wood, wood products, and cork. The slowdown in overall producer price growth was also influenced by easing costs in mining and quarrying (17.3% vs 17.9%) and in water supply, sewerage, waste management, and remediation activities (3.4% vs 4.4%). In contrast, prices increased at a faster pace for electricity, gas, steam, and air-conditioning supply (3.9% vs 2.4%). On a monthly basis, producer prices rose 0.1% in November, easing sharply from an upwardly revised 1.1% in the previous month.