Latvia’s annual inflation rate slowed to 2.6% in July 2026 from 3.4% in June, marking the lowest level since February. The deceleration was largely driven by a steeper drop in food prices, which declined 3.1% after a 0.9% fall in June. Price growth also eased in several key categories, including housing and utilities (6.8% vs 7.2%), transport (4.8% vs 7.1%), restaurants and hotels (6.9% vs 7.9%), healthcare (3.8% vs 4.0%), information and communications (1.5% vs 2.1%), and furnishings (1.1% vs 1.4%).
At the same time, inflation remained at 4.8% for recreation, sports and culture, and at 3.5% for education. By contrast, price growth picked up for insurance and financial services (5.9% vs 5.2%) and for alcoholic beverages and tobacco (1.1% vs 0.9%). On a monthly basis, consumer prices fell by 0.7% in July, following a flat reading in June.
