FX.co ★ Latvia Producer Inflation Ease to 4-Month Low

In May 2025, Latvia experienced a 0.4% year-on-year increase in producer inflation, a slight slowdown from the adjusted gain of 0.7% observed in April. This represented the lowest inflation rate since the deflation seen in January. Price growth eased in sectors such as mining and quarrying, which recorded a rise of 7.5% compared to 8.3% in April, as well as in the water supply, sewerage, waste management, and remediation activities, which saw an increase of 9.7% compared to 10% previously. Furthermore, deflation intensified in the electricity, gas, steam, and air-conditioning supply sector, recording a decline of 6.7% in contrast to the previous 4.4% decrease. Conversely, the manufacturing sector saw a slight uptick in costs, with a 1.4% increase compared to 1.2% prior. On a monthly basis, producer prices inched up by 0.1% in May 2025, recovering from a previously adjusted 0.3% decrease in the earlier month.