Latvia's Producer Price Index (PPI) has slipped into negative territory as the country confronts ongoing economic challenges. According to data updated on February 21, 2025, the PPI in January 2025 has registered a decrease, stopping at -0.3%, in stark contrast to the previous month's figure of 0.1% in December 2024.
The year-over-year comparison reveals a concerning trend as Latvia's producers grapple with pricing pressures. The drop into negative indicates that the costs of goods and services sold by manufacturers have decreased compared to the same month the previous year.
The decline in PPI suggests potential weakening in the manufacturing sector, possibly affecting overall economic growth. It also raises questions about Latvia's future economic outlook and the possible need for policy adjustments to bolster industrial performance and stabilize the national economy. As market actors digest these figures, attention will turn to potential policy responses and their impact on other related economic indicators.
