Latvia Producer Inflation Rises Further

Producer prices in Latvia rose 3.5% year-on-year in July 2026 from a 3.3% increase in the previous month, reaching the highest level since February 2025. The accelerationg was mainly due to higher inflation in manufacturing (1.9% vs 1%), reflecting a higher pace in price growth for the manufacture of beverages (3.5% vs 2.1%), wood products (4% vs 0.9%), printing and recorded media (5.9% vs 4.8%), chemicals (7.4% vs 5.9%), basic metals (7% vs 6.5%), furniture (2.15 vs 1.7%), machinery and equipment (2.3% vs 0.6%) . Additional upward pressure came from stronger inflation for water supply, sewerage, waste management and remediation activities (8.7% vs 7.9%). In contrast, inflation slowed for electricity, gas, steam and air conditioning supply (9.1% vs 12.2%) and mining and quarrying (7.8% vs 8.9%). On a monthly basis, producer prices edged up 0.1%, slowing from a 0.5% increase in the prior month.

Producer prices in Latvia rose 3.3% year-on-year in June 2026 from an upwardly revised 2.0% increase in the previous month, reaching the highest level since February 2025. Price growth accelerated in electricity, gas, steam and air conditioning supply (12.2% vs 2.9% in May). Costs also increased in manufacturing, albeit at a slower pace (1.0% vs 1.1%), with stronger price growth recorded for beverages (2.1% vs 0.8%), textiles (5.6% vs 4.9%), printing and reproduction of recorded media (4.8% vs 0.9%), and rubber and plastic products (7.3% vs 3.3%). Meanwhile, prices eased in mining and quarrying (8.9% vs 12.2%), while inflation held steady in water supply, sewerage, waste management and remediation activities at 7.9%. On a monthly basis, producer prices eased to 0.5% in June from an upwardly revised 1.1% increase in May.

Producer prices in Latvia rose 1.8% year-on-year in May 2026, accelerating from a revised 0.7% increase in the previous month and reaching the highest level since January. Price growth strengthened in manufacturing (1.1% vs 0.7% in April), driven by chemicals and chemical products (6% vs 3.5%), basic metals (6% vs 5.6%), and other non-metallic mineral products (6.1% vs 4.1%). At the same time, costs rebounded in electricity, gas, steam and air conditioning supply (1.7% vs -2.7%), while costs continued to rise for water supply, sewerage, waste management, and remediation activities (7.9% vs 7.5%). Meanwhile inflation in mining and quarrying eased (12.2% vs 15.5%). On a monthly basis, producer prices edged up 0.9% in May from a 0.5% increase in April and marking the strongest gain since January.