In a surprising turn of events, Latvia's Consumer Price Index (CPI) experienced a significant decrease in May 2025. According to the latest data updated on June 9, 2025, the CPI has marked a decline to -0.10%, contrasting with a 1.10% increase noted in April 2025.
This month-over-month comparison indicates a reversal in the inflationary trend that Latvia witnessed earlier this spring. The drop to negative inflation in May suggests changes in factors driving consumer prices, possibly reflecting shifts in demand, supply chain dynamics, or external economic influences impacting Latvia's market landscape.
With the current economic climate and ongoing developments, the nation will be watching closely to see whether this decrease is a temporary fluctuation or a signal of a longer-term deflationary period. Economists and policymakers are likely to examine underlying causes and implications to adapt strategies for economic stability in the months ahead.
