Latvia’s producer price inflation cooled markedly in July 2026, with the Producer Price Index (PPI) rising just 0.1% month-over-month, down from a 0.5% increase recorded in June 2026. The latest data, updated on 21 August 2026, indicate a clear moderation in input cost pressures at the factory gate.
On a month-over-month basis, the July figure shows that price growth in Latvia’s industrial sector has decelerated compared with the previous month, when producers were facing stronger price gains. As defined, the current July reading measures the change in producer prices versus June, while the previous 0.5% figure reflects the change in June relative to May.
The slowdown in PPI growth suggests that upward pressure on production costs may be easing, a development that could, with a lag, feed through into more subdued consumer price pressures and potentially support corporate margins if output prices remain stable. Investors and policymakers will be watching subsequent releases to assess whether this softer trend in producer prices persists in the coming months.
