FX.co ★ Latvia Inflation Rate Slows in May

In May 2025, Latvia's annual inflation rate decreased to 3.6%, down from a twenty-month high of 3.9% in April. This reduction was primarily influenced by a decline in inflation for alcoholic beverages and tobacco products, which saw a reduction from 8% to 7.3%, and for clothing and footwear, where inflation dipped from 1.4% to 0.7%. Miscellaneous goods and services also experienced a significant drop, decreasing from 5.4% to 0.7%. Moreover, the cost of transport continued its downward trend for the third month in a row, falling from -1.3% to -4.2%. Conversely, inflation rose slightly in the sectors of food and non-alcoholic beverages (from 7.3% to 7.5%), housing and utilities (from 1.2% to 3.2%), and restaurant and hotel services (from 4.5% to 4.8%). On a month-to-month basis, consumer prices saw a decline of 0.1% in May, marking the first decrease in nine months and contrasting with the previous 1.1% increase.