Finance Ministry: Inflation may near 4% by year-end

Latvia's Finance Ministry (FM) has released a fresh inflation outlook, saying price growth is expected to remain above 3% for the remaining months of this year.

Year-end acceleration expected

According to the ministry, inflation could climb close to 4% by the end of the year. The main driver cited is higher heating energy tariffs, which will raise household heating costs in a number of areas.

Impact on households

Higher inflation means faster growth in prices for goods and services, which could reduce purchasing power, particularly during the colder autumn and winter months when heating expenses rise. The ministry's forecast suggests that price pressure will persist through the rest of the year rather than being a temporary fluctuation.

The ministry did not detail other factors affecting inflation but specifically highlighted the role of rising heating tariffs in the expected price increase.