Annual Inflation in Latvia Falls to 3.4% in June
Latvia's annual inflation rate dropped to 3.4% in June, driven by rising housing and transport costs, while food prices continued to decline.
According to the Central Statistical Bureau, consumer prices in Latvia rose by 3.4% in June 2026 compared to June 2025. This marks a slowdown from previous months, indicating a gradual easing of inflation. The 12-month average CPI increased by 3.5% compared to the preceding 12 months.
Month-on-month price changes were mixed. The largest upward contribution came from recreation, sports, and culture (+0.3 percentage points), followed by housing, water, electricity, gas, and other fuels (+0.1 pp). Transport prices fell by 0.2 pp, mainly due to lower fuel costs. Food and non-alcoholic beverage prices dropped by 0.5% month-on-month, driven by cheaper fresh fruits and vegetables, fish, butter, and olive oil. However, some items like skimmed milk and chocolate became more expensive after promotional periods ended.
On an annual basis, housing costs surged by 7.2%, with heating up 7.6%, electricity 7%, natural gas 16.6%, and water supply 8.7%. Transport costs rose by 7.1%, primarily due to a 16.8% increase in fuel prices (diesel +18.9%, petrol +15.6%). Restaurant and hotel prices climbed by 7.9%, while recreation and culture services increased by 4.8%.
Food prices fell by 0.9% year-on-year, notably butter (-19.3%), potatoes (-20.6%), and olive oil (-23%). However, some items like fresh vegetables and fish saw significant price hikes. Healthcare costs rose by 4%, while clothing and footwear became cheaper. Overall, the data show that while inflation remains elevated in certain categories, the trend is moderating.
