Latvia’s Producer Price Index (PPI) strengthened notably in April 2026, with the year-on-year indicator rising to 0.9%, up from a revised -0.1% in March 2026. The data, updated on 25 May 2026, signal a marked turnaround in producer price dynamics after a brief period of mild deflation at the factory gate level.
The latest reading means that producer prices in April 2026 were 0.9% higher than in April 2025, compared with March’s 0.1% year-on-year decline versus March 2025. The shift back into positive territory suggests improving pricing power among Latvian producers and may reflect firmer input costs, recovering demand, or both.
For policymakers and market participants, the move from negative to positive PPI growth will be watched closely as a potential early signal for future consumer price trends and corporate margin developments in Latvia’s export-oriented sectors.
