In a surprising turn of economic events, Latvia recorded a deflationary movement in its Consumer Price Index (CPI) for the month of August 2025. According to the latest data updated on September 8, 2025, the CPI registered a decrease of 0.20%. This follows a moderate increase of 0.10% recorded in July 2025.
This month-over-month decline indicates a shift from the previous upward trend that was observed earlier in the year. The August deflationary figure highlights a distinct cooling in consumer prices, contrasting with economic conditions in July when the index showed a slight growth.
Economists are now watching closely to see if this dip is an anomaly or a signal of a larger economic trend. The unexpected drop could influence everything from monetary policy to consumer spending habits, given its potential impact on purchasing power and inflation expectations. As the economy recalibrates in reaction to this data, stakeholders remain alert for further fluctuations in the upcoming months.
